Hedge fund 2016 review

Hedge funds are up 3.53% for the year, posting better performance compared to a modest 1.73% gain over the last year‘, says Eurekahedge.

The asset base for the industry contracted $10.4 billion (€9.9 billion) in 2016, on the back of steep redemption pressure with net outflows totalling $28.2 billion for the year.

European hedge funds have fared the worst among regional mandates witnessing their assets under management decline by $21.6 billion in 2016. Liquidations have also outpaced launches in the European hedge fund space consistently for the past seven quarters with 569 fund shutting down since 2015.

Outside of Europe, almost 13% of billion dollar hedge funds posted double-digit gains in 2016, compared to 8% in 2015. Among the sub-billion dollar hedge funds, almost 20% returned double-digit performance compared with 17% in 2015.

While billion dollar hedge funds have seen their asset base decline by $32.3 billion in 2016, their smaller peers, the sub-billion dollar funds have seen their combined assets grow by $21.9 billion.

Relative value mandated hedge funds posted the best growth in assets, expanding close to 20% for the year, with underlying relative value volatility hedge funds posting impressive gains of 7.18% in 2016.

CTA/managed futures mandated hedge funds have attracted $11.5 billion in capital this year despite mixed returns among its sub-strategies with commodity focused managers gaining 7.72% for the year, outperforming trend-following and FX-focused managers which declined 1.68% and 2.60% for the year respectively.

©2016 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

The tension between urgency and inaction will continue to influence sustainability discussions in 2024, as reflected in the trends report from S&P Global.
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

LATEST SURVEY

Visit our dedicated Ireland channel for all the latest news and analysis on the country's investment industry.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST