New York (HedgeCo.net) – The year 2015 has been one that most hedge fund managers would like to forget. Several well-known funds are looking at posting their worst performance numbers ever or at least their worst in a number of years. A number of funds have closed up shop as redemptions hit several funds hard. The worst hit group of funds have been macro funds as several monetary policy changes around the globe caught these funds off guard and caused losses.

Despite the headlines and rough sledding, some funds have produced solid returns this year and those funds are attracting additional assets. The idea of a fund manager being able to provide positive returns during a year of volatile market conditions and many investment themes not working out is appealing to investors.

Even as the industry as a whole has struggled, the industry has gathered $45 billion in new assets from investors as investors seek investments that are not correlated to the market or provide some stability to their portfolios.
A recent Reuters’ article mentioned two funds that have produced returns over 10% and have attracted billions in new assets. The two funds were Millennium Management and Two Sigma. According to the article, Millennium is up almost 11% and assets have risen over 25% in the last nine months. Two Sigma is up 13% in one fund and 14.5% in another and that has resulted in an increase in firm assets of 29% on a year to date basis through November.

Rick Pendergraft
Research Analyst
HedgeCoVest