20 April 2017
Reporter: Drew Nicol
Hedge fund revenue hits 2013 highs
Hedge funds’ positive performance run continued into its third month in 2017, Preqin has found.

Market intelligence provider Preqin’s AllStrategies Hedge Fund benchmark recorded returns of 0.68 percent last month, building on gains of 1.46 percent and 1 percent in January and February, respectively.

The results mark the hedge fund industry’s best opening quarter of a year since 2013, with overall Q1 2017 performance now at 3.18 percent in the black.

Preqin highlighted that, with just one month of losses recorded since February 2016, the industry has now returned 11.61 percent over a 12-month period.

Amy Bensted, head of hedge fund products at Preqin, indicated that these figures could go some way to dispelling performance concerns within the hedge fund industry, as well as anxieties surrounding wider economic uncertainty that have troubled investors in the asset class over the past year.

Bensted said: “Hedge fund managers have delivered strong returns over this period, posting gains in 11 of the past 12 months and recording their strongest opening quarter to a year since 2013. Hedge funds across all leading strategies, geographies and size classifications have shared in this positive start to 2017. This strong performance across the board is crucial at a time when investor scrutiny is intense.”

“The key to attracting investor capital back into the industry over the remaining three quarters in the year is likely to be maintaining these returns and dealing with concerns over fees, but hedge fund managers will now be able to point to the strength of recent performance as an incentive for investors.”

More news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
GPP joins with Edgefolio for prime services
26 June 2017 | London | Reporter: Drew Nicol
GPP has partnered with Edgefolio to provide a capital introduction service to its prime brokerage clients
China’s bond market opened through Tradeweb
26 June 2017 | New York | Reporter: Drew Nicol
Northbound trading will begin in the initial phase, meaning overseas investors will be able to invest in the China inter-bank bond market
Former ITG sec lending trader banned for ADR misuse
23 June 2017 | Washington DC | Reporter: Drew Nicol
The charges follow ITG’s settlement in January when the broker-dealer agreed to pay more than $24.4 million over allegations of securities lending violations relating to the facilitation of naked short selling
ICMA: NSFR makes EU repo less attractive
23 June 2017 | London | Reporter: Drew Nicol
The association also point to increased automation of highly manual and labour-intensive processes of the market as a way to mitigate rising costs and create efficiencies
Brexit may push out small lenders
22 June 2017 | London | Reporter: Drew Nicol
Smaller beneficial owners are at risk of being pushed out the market by rising regulatory compliance costs, a revenue squeeze and Brexit
UK Money Markets Code to rebuild trust
22 June 2017 | London | Reporter: Drew Nicol
Industry representatives drafted the code in partnership with the Bank of England (BoE) to replace the previous guidance, which has been judged to be outdated
Quantitative easing going nowhere for now
22 June 2017 | Berlin | Reporter: Mark Dugdale
The European Central Bank (ECB) left interest rates unchanged earlier in June and expects them “to remain at their present levels for an extended period of time, and well past the horizon of the net asset purchases”