Coming off a strong 2017, the hedge fund industry started 2018 off strong with an average return of +2.59%, according to eVestment’s January 2018 Hedge Fund Performance Report.
This is the industry’s best monthly return since March 2016 and returns were the most broadly positive in nearly four years, with 81% of reporting hedge funds posting positive returns in for the month.
Other interesting points in the report include:
- Macro hedge funds posted gains reminiscent of pre-Financial Crisis levels, with returns of +3.34% in January.
- Managed futures reported their highest returns since early 2008, with nearly 90% showing positive numbers in January and average gains near 6%.
- Emerging markets funds continue to outperform their developed market counterparts, posting returns of +4.22% as opposed to developed markets’ +1.97%.
The hedge fund industry continues to hear criticism for its fee structures and performance in the face of markets that seemed to be moving ever upward until recently and the rise of passive investment products. However, with the strong 2017 behind it and 2018 starting off strong, hedge fund managers have an opportunity to remind investors and consultants of the role these funds can play in an diversified portfolio.
To download a full copy of the report, please click here.