{"id":39746,"date":"2015-01-27T00:06:53","date_gmt":"2015-01-26T23:06:53","guid":{"rendered":"http:\/\/beta.next-finance.net\/note\/hedge-funds-deliver-worst-annual-performance-since-2011\/"},"modified":"2019-12-30T23:21:10","modified_gmt":"2019-12-30T22:21:10","slug":"hedge-funds-deliver-worst-annual-performance-since-2011","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/note\/hedge-funds-deliver-worst-annual-performance-since-2011\/","title":{"rendered":"Hedge Funds Deliver Worst Annual Performance Since 2011"},"content":{"rendered":"<p>Data from Preqin\u2019s forthcoming 2015 Global Hedge Fund Report shows that industry performance ultimately<br \/>\ndisappointed in 2014. Most hedge funds failed to match the returns made in the previous year, and solid advances<br \/>\nwere frequently followed by losses as managers struggled to gain momentum.<\/p>\n<p>Looking beyond the headline returns, however, reveals a more complex picture. All core hedge fund strategies<br \/>\ndelivered gains to satisfy absolute return investors in 2014. Furthermore, the strong returns of several focused<br \/>\nstrategies, such as CTA funds and value-orientated equity strategies, highlighted the need to manage a diversified<br \/>\nportfolio of hedge funds to achieve the long-term low volatility of returns that hedge funds aim to provide. As a result,<br \/>\nthe majority of investors (57%) felt hedge funds at least met expectations in 2014, with a notable proportion (8%)<br \/>\nfeeling hedge funds in fact exceeded expectations.<\/p>\n<p><quote><br \/>\n<strong>Key Hedge Fund Performance Stats in 2014:<\/strong><\/p>\n<ul>\n<li> Q1 2014 was the worst start to a year since 2008 for hedge fund performance, and the third quarter was the<br \/>\nfirst negative quarter for the Preqin All-Strategies Hedge Fund benchmark since Q2 2012.<\/li>\n<li> The Preqin All-Strategies Hedge Fund benchmark made losses in six of the months in 2014.<\/li>\n<li> Only 13% of hedge funds met or exceeded the Preqin All-Strategies Hedge Fund benchmark generated in<br \/>\n2013 (12.25%).<\/li>\n<li> Credit strategies was the best performing core hedge fund strategy in 2014, with average returns of 5.59%.<\/li>\n<li> Value-orientated equity strategies was the best performing focused strategy, providing returns of 12.12% over<br \/>\nthe year. Mortgage- and asset-backed lending strategies were two other notable strong performing focused<br \/>\nstrategies in 2014, posting returns of 9.53% and 9.26% respectively.<\/li>\n<li> CTA funds had average returns of 9.96%, leading the hedge fund benchmark by 618 basis points. This is also<br \/>\nthe strongest year these funds have had since 2010.<\/li>\n<li> North America was the best performing regional benchmark, gaining 5.75% over the year.<br \/>\n<\/quote><\/li>\n<\/ul>\n<p><img loading=\"lazy\" class=\" aligncenter size-full wp-image-39744\" src=\"http:\/\/beta.next-finance.net\/wp-content\/uploads\/2015\/01\/preqin_s_full-year_2014_hedge_fund.png\" alt=\"preqin_s_full-year_2014_hedge_fund.png\" align=\"center\" width=\"1055\" height=\"1184\" srcset=\"http:\/\/beta.next-finance.net\/wp-content\/uploads\/2015\/01\/preqin_s_full-year_2014_hedge_fund.png 1055w, http:\/\/beta.next-finance.net\/wp-content\/uploads\/2015\/01\/preqin_s_full-year_2014_hedge_fund-267x300.png 267w, http:\/\/beta.next-finance.net\/wp-content\/uploads\/2015\/01\/preqin_s_full-year_2014_hedge_fund-912x1024.png 912w, http:\/\/beta.next-finance.net\/wp-content\/uploads\/2015\/01\/preqin_s_full-year_2014_hedge_fund-768x862.png 768w, http:\/\/beta.next-finance.net\/wp-content\/uploads\/2015\/01\/preqin_s_full-year_2014_hedge_fund-990x1111.png 990w\" sizes=\"(max-width: 1055px) 100vw, 1055px\" \/><\/p>\n<p>According to Amy Bensted, Head of Hedge Fund Products, <em>\u201cAfter a solid year of returns in 2013, the performance of hedge funds in 2014 was widely seen as underwhelming.<br \/>\nThe returns of some funds, including those employing asset-backed and mortgage-backed strategies, were more<br \/>\nimpressive, and others, such as commodities and emerging markets-focused funds, provided a hedge against poor<br \/>\nperformance in related public markets.<br \/>\nAlthough the high-profile exits of CalPERS and PFZW from the asset class pulled the industry under the spotlight, the<br \/>\nvast majority of institutional investors worldwide remain committed to hedge funds. Preqin\u2019s latest poll of investors<br \/>\nfound that many thought hedge funds met or exceeded expectations throughout 2014, and although performance<br \/>\nsticks out as a key issue going into 2015, both investors and fund managers remain upbeat. While fund managers will<br \/>\nbe scrutinized over the coming year, the key features of hedge funds, such as diversification, low volatility and<br \/>\nprotection against significant market downturns, are expected to hold true and to continue to attract investors.\u201d<\/em><div id='gallery-1' class='gallery galleryid-39746 gallery-columns-3 gallery-size-herald-lay-c1'><figure class='gallery-item'>\n\t\t\t<div class='gallery-icon portrait'>\n\t\t\t\t<a class=\"herald-popup\" href='http:\/\/beta.next-finance.net\/wp-content\/uploads\/2015\/01\/preqin_s_full-year_2014_hedge_fund.png'><img width=\"470\" height=\"313\" src=\"http:\/\/beta.next-finance.net\/wp-content\/uploads\/2015\/01\/preqin_s_full-year_2014_hedge_fund-470x313.png\" class=\"attachment-herald-lay-c1 size-herald-lay-c1\" alt=\"\" loading=\"lazy\" srcset=\"http:\/\/beta.next-finance.net\/wp-content\/uploads\/2015\/01\/preqin_s_full-year_2014_hedge_fund-470x313.png 470w, http:\/\/beta.next-finance.net\/wp-content\/uploads\/2015\/01\/preqin_s_full-year_2014_hedge_fund-300x200.png 300w, http:\/\/beta.next-finance.net\/wp-content\/uploads\/2015\/01\/preqin_s_full-year_2014_hedge_fund-414x276.png 414w, http:\/\/beta.next-finance.net\/wp-content\/uploads\/2015\/01\/preqin_s_full-year_2014_hedge_fund-640x426.png 640w, http:\/\/beta.next-finance.net\/wp-content\/uploads\/2015\/01\/preqin_s_full-year_2014_hedge_fund-130x86.png 130w, http:\/\/beta.next-finance.net\/wp-content\/uploads\/2015\/01\/preqin_s_full-year_2014_hedge_fund-187x124.png 187w\" sizes=\"(max-width: 470px) 100vw, 470px\" \/><\/a>\n\t\t\t<\/div><\/figure>\n\t\t<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>The Preqin All-Strategies Hedge Fund benchmark gained just 3.78% in 2014, the lowest<br \/>\nannual return since the 1.85% loss seen in 2011<\/p>\n","protected":false},"author":20,"featured_media":39744,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1481],"tags":[1687,1655,1723,1651,1437,1724,2243,2091],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/39746"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=39746"}],"version-history":[{"count":1,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/39746\/revisions"}],"predecessor-version":[{"id":39747,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/39746\/revisions\/39747"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/39744"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=39746"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=39746"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=39746"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}