eVestment: Hedge Fund Average Returns Highest Since January 2012, Activist Strategies Tops In Performance

The February 2014 February Global Hedge Fund Performance report from eVestment shows strong results for these funds.

Some key points in the report, according to report author and eVestment Vice President of Research Peter Laurelli:
 

1. Hedge funds posted their highest return in February since January 2012, supported by rising equity and commodity markets, and are outpacing the S&P by nearly 100 basis points in 2014. 
2. Activist strategies are again at the top of the hedge fund industry posting large gains in February and sitting +3.91% for 2014. Investors allocated heavily to event driven strategies to begin 2014 and thus far the strategy has rewarded investor’s confidence.
3. Large macro funds posted above average returns during the month, but the universe’s February returns were brought down by smaller managers. Combined redemptions in December and January were the second largest two month total on record for macro funds, however large macro strategies are outpacing the hedge fund industry YTD.
4. Credit funds have been facing redemptions since October 2013, a reaction to the rate spike in May/June 2013, but since have posted returns with an annualized rate of 14%.
5. Investors’ worries over China’s growth entering 2014 has hurt China-focused hedge funds for the second month in a row. Both China and Japan funds were among the industry leaders in 2013, but sit in negative territory this year.