Corporate Financing Analysis - Hedge Fund Returns Continue Bull Run; Asia-Pacific Outperformance - 27 NOV 2017

Despite the dual headwinds of the slowdown in capital inflows (see ' Net Inflows Drop Bad News For Hedge Funds ' , August 30 2017) and the ongoing conflict between fund managers and investors with regards to the traditional fee format in the industry, the global hedge fund industry is continuing to post positive returns and the trend looks set to continue through into 2018. According to Preqin data, hedge funds returned 1.15% during the month of October, which represents the twelfth consecutive month of positive returns for the industry.

In total, October's performance brings the y-t-d return for global hedge funds to 9.3%, which, if its remains on its current trajectory, will be the strongest return for the industry since 2013. BMI cautions that such impressive returns may be hard to replicate if risk aversion begins to creep in once more; however, we believe that alternative investors will keep faith with the 'hedgies' for the coming months, having enjoyed such a positive and uninterrupted run with them over the last year ( see ' Hedge Fund Bull Run Continuing To Find Momentum ' , October 4 2017).

Asia-Pacific Leading The Way

Equities Strategies On Top
2017 Y-T-D Global Hedge Fund Returns By Strategy, %
Source: Preqin , BMI

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