eVestment: 80% of Hedge Funds in the Black Year-To-Date

Nov 9 2017 | 9:11pm ET

After two tough years, the hedge fund industry is poised to book its best aggregate annual performance since 2013, according to new research published by eVestment.

Returns for eighty percent of the industry are positive for the year, with average gains from those funds in the black nearing 12%, according to the October 2017 eVestment Hedge Fund Performance Report. 

For October, eVestment’s Hedge Fund Aggregate returned +1.22%, bringing year-to-date returns to +7.18%. Most major strategies were positive, with distressed and FX being the main exceptions, and CTAs and macro strategies booked very strong returns. With the exception of commodities and FX, all primary strategies are positive year-to-date. 

Other highlights from eVestment’s October report: 

  • Managed futures funds had one of their best months ever in October, returning +3.76% for the month. At +2.25%, YTD returns still lag many other strategies, however.
  • Large macro funds had their best month of 2017 in October, at +2.14%, and nearly 70% of macro funds are up for the year. 
  • Long/short equity funds, returning +1.11% in October and +9.70% YTD, have overtaken activists as the best major strategy of 2017. Relatively steady gains throughout the year have pushed the strategy to the top of the industry in 2017 among primary strategies. And no other major strategy has a higher proportion of funds in the black so far this year (91%). 
  • On the surface, commodity fund performance looks exceedingly negative in 2017, at -1.69% YTD. However, more than half of reporting funds are in the black this year (52%).
  • Emerging market strategies had outperformed developed market strategies by at least 2x for eight consecutive months before September. Losses from India in September and Brazil/Russia in October have put a halt to that trend. 
  • China-focused hedge funds are leading the industry thus far in 2017, retuning +3.64% in October and +29.26% YTD.

Acquired by NASDAQ in early September, Atlanta-based eVestment was founded in 2000 by Jim Minnick, Matt Crisp and Heath Wilson. The company boasts one of the largest, most comprehensive global databases of traditional and alternative strategies and provides institutional investment data intelligence and analytic solutions to clients worldwide.

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