eVestment: HFs in Positive Territory in 2017

June, 2017

Hedge funds returned an average of +0.21% in May 2017, and aggregate returns are +3.20% YTD in 2017 according to eVestment’s Hedge Fund Industry Asset Flow Report. May performance was led by funds focused on corporate capital structures, while commodity and currency funds continue to be the primary drag on industry performance.
Asset flows for the month stood at $10.52 billion for the month, bringing YTD flows to $23.32 billion. Total industry AUM sits at $3.130 trillion, with multi-strategy, directional credit and macro funds seeing strong investor interest.
Some interesting points from the new May 2017 hedge fund performance report include:

  • Convertible arbitrage strategies had the strongest performance in May, retuning +0.56%, bringing YTD returns to +3.25%.
  • Other strong performers in May were multi-strategy credit funds, coming in at +0.46% and managed futures funds, at +0.38%. In spite of the positive May returns, managed futures funds continue to be negative YTD, though just slightly, at -0.20%.
  • Commodity strategies continue to have a tough time this year, returning -1.55% in May, with YTD performance at -3.20%. This comes off a positive performance of +5.65% in 2016.
  • Distressed funds also dipped negative in May, retuning -0.51%, but they are still positive YTD at +2.84%.
  • Japan, China and Asia ex-Japan funds all saw positive results in May. On the other hand, India, Russia and Brazil funds all dipped negative in May, but remain in positive territory YTD. India funds remain among the strongest performers so far this year, with YTD returns at +18.33%.

Asset flows

  • Multi-strategy funds were big winners in asset flows in May, pulling in $3.65 billion in new assets, bringing YTD asset flows to $17.14 billion.
  • Managed futures funds saw among the biggest asset losses in May, with AUM in these funds falling -$1.05 billion. YTD flows remain positive at $4.19 billion.
  • Among firm domiciles, funds based in the Americas saw $11.41 billion positive asset flows in May.