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Hedge funds continued rising in 2017

The global hedge fund industry performed strongly in 2017 with aggregate returns significantly higher than the previous two years.

According to eVestment’s monthly ‘Hedge Fund Industry Performance Report’ aggregate returns for the year were 8.83% compared with 5.7% the previous year and a loss of 0.71% in 2015.

Hedge funds focused on India and China were the strongest overall performers in the industry in 2017. India-focused funds returned 35.01% for the year, compared to 4.53% the previous year while China-focused hedge funds came a close second, returning 34.82% in 2017, up strongly from a loss of 5.39% the previous year.

In regional terms, Asia outperformed the rest of the world in hedge fund returns, with Africa-Middle-East-focused funds in silver medal position.

Funds domiciled in Asia, continued the strong performance theme. Asia-domiciled hedge funds returned 18.60% in 2017, compared to 9.34% for hedge funds domiciled in the UK, 7.87% for hedge funds domiciled in the US and 7.08% for hedge funds domiciled in continental Europe.

Among primary markets, equity-focused funds were strong performers in 2017, returning 13.14% for the year.

Over 80% of the hedge funds tracked by eVestment delivered positive results in 2017 and 60% of funds improved their performance compared to 2016 results.

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