New York (HedgeCo.Net) – A two-month decline in hedge fund performance came to an end in November as the hedge fund industry saw positive results last month, according to the November 2014 eVestment Hedge Fund Performance Report.
Some key points from the report include:
1) Aggregate hedge fund performance was a positive 1.08% in November, ending the industry’s two-month decline. However, a tough year for hedge funds continues as year-to-date returns of 2.85% are well below 2013’s full-year increase of 10.20% and below other industry benchmarks.
2) The recent strong dollar run has been a huge benefit to large managed futures funds. The segment has risen nearly 11% since July and the managed futures universe is the leading major hedge fund strategy in 2014.
3) Activist hedge funds posted gains in November, beating the S&P 500 and resuming their position among the leaders of the industry in 2014, having erased nearly all of the universe’s aggregate losses from September and October.
4) Credit strategies posted negative returns in November, the fifth month in a row of losses. A decline in high yield and European markets, coinciding with the strong USD and decline in oil prices, has weighed on the group.
5) Emerging markets underperformed during the month, led to the downside by funds focused on Brazil. India posted another positive month bringing the group’s average returns to 52.10% in 2014.
Hedge fund AUM has rebounded following two months of investor outflows according to the latest asset flow data from eVestment. Investors added $5.4 billion into hedge funds and performance gains bumped total industry AUM up to $3.070 trillion.
Outside of the domestic US market, interest in exposure to Asia was elevated, with Asia-focused strategies seeing inflows of $1.66 billion in November.
