At End of Q3, Hedge Funds are Behind 2017 Returns

11 Oct

At End of Q3, Hedge Funds are Behind 2017 Returns

Global hedge fund industry performance dipped negative in September, with overall industry returns at -0.17% last month, according to the latest eVestment data. This brings Q3 returns to just barely positive at +0.30% and year to date (YTD) returns to +0.53%. This is a far cry from the industry’s aggregate return of +8.92% for 2017 and, in a generally strong investment market, may re-ignite concerns about the hedge fund industry.

Some highlights from the latest data include:

  • Among primary strategies, Distressed funds were the big winners in September. These funds had returns of +0.84%, bringing YTD returns to +4.92%, putting Distressed funds at the top in returns among primary strategies.
  • Origination & Financing funds are another bright spot for the year. While these funds’ September returns were only +0.28% last month, YTD returns for the strategy stand at +4.33%.
  • On the flip side, Event Driven – Activist funds were the worst performers among primary strategies, at -2.14%. bringing YTD returns down to -2.38%.
  • Russia-focused hedge funds surprised in September with positive returns of +3.75%, although September’s positive results weren’t enough to make up for negative returns for the quarter and the year.
  • India-focused funds continued to disappoint after a stellar 2017 (when these funds returned +32.87%). In September, India-focused fund returns were negative at -11.68%, with YTD returns at -20.84%.
  • China-focused also continue a negative run this year, with September returns at -2.16% and YTD returns at -9.48%. This is also a far cry from China-focused funds’ huge returns of +34.74% in 2017.

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