Opalesque Industry Update – Hedge funds surged in July to begin 2H20, with the HFRI Fund Weighted Composite Index (FWC) posting the 2nd highest monthly gain since January 2019 and the 3rd strongest gain since 2010.
The HFRI FWC climbed +3.2 percent for the month, topping the gain of the DJIA, as reported today by HFR.
The investable HFRI 500 Fund Weighted Composite Index advanced +2.8 percent in July, fully offsetting the 1H20 decline to bring YTD performance into positive territory at +0.1 percent, topping the DJIA by 750 basis point (bps) over the first seven months of the year.
Hedge fund gains were spread across all strategies, led by Equity Hedge and Macro. The HFRI Equity Hedge (Total) Index led strategy performance for the month, surging +3.7 percent, with strong contributions from Energy and Technology exposures.
Edgefolio gathered the top funds from a range of fund types, you can find them below. (source)
Long Only Funds
| Rank | Company | Fund Name | July ’20 | YTD | CAGR | 3 Years | AUM (Million $) |
|---|
(Criteria used: Track Record > 1 Year, Currency: $US dollar, AUM > $100m)
ETFs
| Rank | Company | Fund Name | July ’20 | YTD | CAGR | 3 Years | AUM (Million $) |
|---|
(Criteria used: Track Record > 1 Year, Currency: $US dollar, AUM > $100m)
UCITS Funds
| Rank | Company | Fund Name | July ’20 | YTD | CAGR | 3 Years | AUM (Million $) |
|---|
(Criteria used: Track Record > 1 Year, Currency: $US dollar, AUM > $100m)
Fund of Funds
| Rank | Company | Fund Name | July ’20 | YTD | CAGR | 3 Years | AUM (Million $) |
|---|
(Criteria used: Track Record > 1 Year, Currency: $US dollar, AUM > $100m)
Liquid Alternative and Risk Premia products also advanced in July, with the HFRI-I Liquid Alternative UCITS Composite Index gaining +1.35 percent, led by the HFRI-I Equity Hedge Index, which gained +1.6 percent. The HFR Bank Systematic Risk Premia Credit Index surged +15.4 percent for the month, while the HFR BSRP Multi-Asset Index jumped +10.5 percent. Risk Parity strategies also produced strong returns in July, with the HFR Risk Parity Vol 15 Index vaulting +9.3 percent. The HFR Blockchain Index spiked +30.3 percent for the month, as Bitcoin posted strong gains.
“Hedge funds surged across a wide range of strategies in July, driving the HFRI into positive territory for the year, with strong performance in Technology, Shareholder Activist, CTAs and Volatility, as well as Blockchain/Cryptocurrency, Risk Parity, Risk Premia and liquid alternative products,” stated Kenneth J, Heinz.
“Institutional investors are actively looking to increase exposure to hedge funds and alternative strategies in 2H20 as a direct and ongoing result of the intense and extreme volatility from 1H20, including both realized and implied volatility, and positive and negative market cycles. Positive performance for 2020 has contributed to an environment of and expectations for strong industry-wide growth into 2021,” Kenneth added. (source)
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Disclaimer
Data provided by Morningstar. Care has been taken to ensure that the information is correct, but Edgefolio neither warrants, represents nor guarantees the contents of information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Past performance does not predict future performance, it should not be the main or sole reason for making an investment decision. The value of investments and any income from them can fall as well as rise.