Hedge Fund Performance Negative in August, Positive YTD

11 Sep

Hedge Fund Performance Negative in August, Positive YTD

Aggregate monthly performance for the hedge fund industry slipped into the red in August at -0.31%, the second negative month the industry has seen this year (May was the first), according to the just-released eVestment August 2019 hedge fund performance data. Year to date (YTD) 2019 industry performance sits at +6.97%.

In spite of a mix of positive and negative monthly returns among hedge fund types in August, almost all segments of the industry are in the green for performance YTD, highlighting the continued comeback of the industry from 2018, when the industry and almost every segment ended the year in the red.

Managed Futures funds were the big performance winners in August, returning +4.40% last month. And with YTD performance at +12.74%, Managed Futures funds are among the big performance winners for the year so far as well.

Other interesting performance figures in the new data include:

  • China-focused hedge funds dipped into the red in August, returning -0.73%, but with YTD performance at +15.14% they are the strongest performing hedge fund segment eVestment tracks. Russia- and Brazil-focused funds are performing well YTD as well, at +14.89% and +11.37% so far this year.
  • India-focused hedge funds continued to suffer in August, with returns at -5.95% for the month and racking up -9.69% returns YTD. This continued the pain these funds experienced in 2018, when India-focused funds saw performance at -16.23%.
  • Macro funds saw average performance of +1.54% in August, bringing YTD performance to +6.55%.
  • Long/Short Equity funds saw -1.56% returns in August, putting them second to the bottom in performance among primary strategies for the month. However Long/Short Equity funds’ YTD performance of +8.42% puts them among the strongest primary segments in YTD returns.

Below is the full eVestment August 2019 hedge fund performance data. To download other eVestment monthly and quarterly research reports, please click here.

Overall HF returns:

Industry Benchmarks Aug YTD 2019 2018 2017
Hedge Fund Aggregate -0.31% 6.97% -5.08% 8.92%
50% MSCI World/50% Citi WGBI 0.31% 11.58% -4.60% 14.75%
S&P 500 -1.58% 18.34% -4.38% 21.83%
Primary Markets Aug YTD 2019 2018 2017
Broad Financial Derivatives 4.12% 11.59% -5.29% 2.27%
Broad Multi-Market 1.64% 7.50% -3.86% 4.49%
FX/Currency 0.56% 2.93% 0.76% -3.46%
Volatility/Options Strategies -0.20% 3.03% -2.39% 4.82%
Commodities -0.26% 2.84% -6.00% 0.46%
Fixed Income/Credit -0.51% 4.25% 0.00% 6.01%
Broad Capital Structure -0.90% 5.91% -3.47% 8.89%
Equity -1.52% 7.52% -7.54% 13.44%
Primary Strategy Aug YTD 2019 2018 2017
Managed Futures 4.40% 12.74% -5.91% 2.73%
Macro 1.54% 6.55% -2.95% 3.87%
Origination & Financing 0.37% 4.42% 4.99% 6.69%
Market Neutral Equity 0.17% 1.41% -3.21% 3.58%
Directional Credit 0.14% 4.79% 0.68% 5.32%
Quantitative Directional Equity 0.10% 7.36% -4.71% 10.45%
Multi-Strategy -0.08% 5.05% -3.35% 6.92%
Multi-Strategy Credit -0.18% 4.14% 0.03% 5.71%
Convertible Arbitrage -0.43% 6.17% -2.22% 5.49%
Relative Value Credit -0.52% 3.95% -0.98% 5.48%
Event Driven -0.63% 4.15% -1.96% 7.41%
Distressed -0.69% 3.96% -0.21% 6.62%
Long/Short Equity -1.56% 8.42% -7.05% 12.14%
Event Driven – Activist -1.87% 6.31% -10.36% 11.12%
Prominent Universes by Size Aug YTD 2019 2018 2017
Ten Largest Hedge Funds -1.61% 3.73% 0.41% 5.91%
Ten Largest Long/Short Equity -1.49% 5.19% -4.69% 8.57%
Ten Largest Macro -1.64% 4.48% 2.13% 2.24%
Ten Largest Managed Futures 3.62% 15.08% -5.94% 3.81%
Ten Largest Multi-Strategy -0.16% 4.28% -2.47% 6.87%
Economic Development Aug YTD 2019 2018 2017
Emerging Markets -2.15% 6.79% -10.78% 19.49%
Country Exposure Aug YTD 2019 2018 2017
China -0.73% 15.14% -16.62% 34.77%
Asia ex-Japan -0.79% 4.70% -11.33% 21.76%
Japan -1.45% 1.01% -8.04% 13.76%
Brazil -2.27% 11.37% -2.29% 15.13%
Russia -2.82% 14.89% -13.20% 13.16%
India -5.95% -9.69% -16.23% 32.40%