The Preqin All-Strategies Hedge Fund benchmark posted returns of 7.40% in 2016, marking the best performance year for the industry since 2013 and more than tripling the gains made through 2015 (+2.03%). Despite a volatile start to the year which caused some performance difficulties, hedge funds rebounded to post positive returns in nine of the final 10 months of the year. This strong period of performance for the asset class sees three-year annualized returns stand at 4.83%, while five-year annualized gains have reached 7.47%.<\/p>\n
Overall, all leading hedge fund strategies posted positive returns across 2016, and only relative value funds saw their Other Key Hedge Fund Performance Facts:<\/p>\n According to Amy Bensted \u2013 Head of Hedge Fund Products, Preqin \u201c2016 showed that hedge funds were able to cast off performance struggles that hampered them in 2015, and they The Preqin All-Strategies Hedge Fund benchmark posted returns of 7.40% in 2016, marking the best performance year for the industry since 2013 and more than tripling the gains made through 2015 (+2.03%). Despite a volatile start to the year which caused some performance difficulties, hedge funds rebounded to post positive returns in nine of the final 10 months of the year. <\/p>\n","protected":false},"author":20,"featured_media":60142,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1470],"tags":[1687,1655,1723,1690,1651,1662,2243,2068],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/60144"}],"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=60144"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/60144\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/60142"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=60144"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=60144"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=60144"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Event driven strategies hedge funds saw double-digit gains in 2016, returning 12.47% for the year. This marks a sharp
\ncontrast from the previous year, when event driven funds were the only leading strategy to suffer losses (-0.78%).<\/quote><\/p>\n
\n2016 returns (+4.74%) fail to match 2015 performance (+5.65%).<\/p>\n\n
\nto generate the greatest returns in 2016. Emerging and small hedge funds saw gains of 8.18% and 6.40%
\nrespectively in 2016, while medium and large vehicles posted performance of 5.53% and 4.63%<\/li>\n
\nfunds returned 10.20% in 2016. Funds focused on Europe (+2.89%) and the Asia-Pacific region (+1.68%)
\nstruggled through the year, but strong gains in Latin America saw emerging markets funds return 9.96%.<\/li>\n
\n2016, improving on 2.51% gains made in 2015. By contrast, systematic funds saw their annual
\nperformance fall from 5.46% in 2015 to 4.44% the following year.<\/li>\n
\nreturned 0.91% for the year. This an improvement on the 0.15% recorded in 2015, but remains a long way
\nshort of the double-digit returns CTAs posted in 2014.<\/li>\n
\nreturned more than 1.00% in July. As such, annual returns for funds of hedge funds fell to -0.25% in
\n2016, their lowest performance year since 2011, when they saw losses of 3.98%.<\/li>\n<\/ul>\n
\nposted the best performance year for the industry since 2013. Fear over China\u2019s economy in Q1, the Brexit vote at the
\nend of Q2 and the US presidential election in Q4 drove the narrative in 2016; and although there were some highprofile
\nlosses, the associated volatility created opportunities for hedge funds to produce significant returns for
\ninvestors. Looking ahead to 2017, the continued consequences of these geo-political events are likely to remain key
\ndeterminants of industry performance.
\nDespite the marked improvement in performance, hedge fund managers will be aware that in recent years returns
\nhave still fallen short of other alternative asset classes and public market indices. This is especially pertinent in the
\nwake of some high-profile investors announcing the reduction or elimination of hedge fund investments from their
\nportfolio. As a result, firms will be eager to sustain the momentum built over the latter part of 2016 and to prove their
\nworth as investments capable of generating non-correlated, downside-protected performance.\u201d<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"