eVestment: Hedge Funds Up 7.3% in 2012

Jan 9 2013 | 11:42am ET

Hedge funds added 7.3% in 2012, according to eVestment, and even managed to outperform the S&P 500 TR in Q4.

And while eVestment's numbers are higher than those of most other indices (the HFRX Global Hedge Fund Index was up 3.51%, the Credit Suisse Liquid Alternative Beta Index was up 3.22% and the Eurekahedge Hedge Fund Index was up 5.63% in 2012), hedge funds still trailed the S&P 500's full-year gains of 16%.

Almost all strategies tracked by the research firm ended 2012 in the black. The best performers were mortgage strategies, up 18.66% on the year (0.75% in December); long/short equities, up 9.57% on the year (2.24% in December); and relative-value credit, up 9.23% on the year (0.36% in December).

Event/driven distressed strategies were up 9.07% on the year (1.84% in December); convertible arbitrage strategies were up 7.02% on the year (0.36% in December); and multi-strategy funds were up 5.84% on the year (2.25% in December).

Reporting lower, but still positive, returns were macro strategies (up 3.24% on the year, 1.04% in December) and market neutral (up 3.04% on the year, down 0.03% in December).

The only losing strategy in 2012 was managed futures, down 0.71% on the year (but up 0.46% in December).

In regional terms, emerging markets funds triumphed, gaining 16.84% on the year to developed markets' 6.53%, led by Indian funds (up 20.54% on the year); Chinese funds (up 14.13% on the year), and Brazilian funds (up 12.84% on the year).

Credit fund assets under management (at $796.93 billion), surpassed equity fund AUM (at $788.91 billion) for the first time on record, according to eVestment.
 
“For all the negative press hedge funds received in 2012, the year was broadly positive,” said eVestment VP Peter Laurelli in a statement. “Investor flows were firmly positive with nearly $40 billion of inflows through November, almost doubling last year’s full year total. Many strategies returned nearly 10% in a year that was widely expected to be tumultuous, and did so in the face of a rising burden from regulation and oversight.”


In Depth

Q&A: Star Mountain's Brett Hickey On Investing In 'The Growth Engine Of America'

Sep 22 2017 | 5:06pm ET

Lower middle-market companies form the economic fabric of the nation, but they can...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

 

From the current issue of

With NFL season on the horizon, it’s time to take a look at our Fantasy Football value picks. Last year, we nailed it on Drew Brees, Jordan Howard, Frank Gore and Dwayne Allen. We missed pretty badly on Duke Johnson, Demaryius Thomas, Mohammed Sanu and Eli Manning.