Hedge funds registered their first monthly loss of 2015 with the Eurekahedge Hedge Fund Index down 1.26% in June, while the MSCI World Index declined 2.88% during the month. Despite a strong start to the year, events in Europe and China dented hedge fund returns, with overall returns coming in at 3.31%.
Total assets managed by the top 100 alternative investment managers globally reached US$3.5 trillion in 2014 (up from US$3.3 trillion in 2013), finds Towers Watson.
When it comes to pension plans and hedge funds, size matters. That message came across loud and clear last fall when the US$298-billion California Public Employees’ Retirement System (CalPERS) eliminated its $4-billion hedge fund program.
The hedge fund industry has made a great deal of progress over the past 20 or so years, says Chris Addy, president and CEO of Castle Hall Alternatives. He made the remarks at an AIMA Canada event in Toronto on Tuesday.
Franklin Templeton Investments has introduced its first multi-manager, liquid alternative strategy in Canada.
Understanding the three main types of hedge funds and where pension funds should invest
There was significant growth in assets held by private equity, hedge fund, private debt, real estate and infrastructure fund managers in 2014.
Hedge funds closed the final month of the year in positive territory. The Eurekahedge Hedge Fund Index was up 0.25% in December, while the MSCI World Index finished the month down 0.8%.
As institutions invest less in traditional hedge funds, managers are considering new products to attract investors, says EY’s 2014 global hedge fund and investor survey.
Hedge funds are up 3.45% year-to-date, with roughly 18% of funds boasting double-digit returns for the year, half the number for the same period last year, finds the latest Eurekahedge Report.