Hedge funds get a lift on speeding economy and M&A

Hedge funds marked November with 13 consecutive monthly increases in returns, driven partly by ongoing US economic growth.

Data by Hedge Fund Research (HFR) showed the HFRI Fund Weighted Composite Index gained 0.5% in November, led by equity hedge and special situations funds.

Equity hedge funds led all main strategies during the month. The HFRI Equity Hedge (Total) Index advanced 1.1%, or 12.1% year-to-date.

Also, event-driven hedge funds advanced as corporate M&A activity accelerated through November and into December with large transactions at various stages of completion.

Kenneth J. Heinz, president of HFR, said: “Hedge funds gained in November as M&A activity accelerated with investors and managers positioning for transformative impacts across retail, media, manufacturing, distribution and financial industries.

“Performance was also driven by positive developments regarding US tax reform, as well as improving expectations for near-term economic growth and optimism for additional strength into 2018. It is likely that these favourable trends will continue to drive industry growth through year end.”

©2017 funds europe