{"id":2463974,"date":"2023-05-02T20:30:39","date_gmt":"2023-05-03T00:30:39","guid":{"rendered":"https:\/\/www.valuewalk.com\/?p=2463974"},"modified":"2023-05-03T21:28:29","modified_gmt":"2023-05-04T01:28:29","slug":"hedge-funds-continued-to-rebound-in-q1-with-multi-strategy-and-equities-funds-still-on-top","status":"publish","type":"post","link":"https:\/\/www.valuewalk.com\/hedge-funds-continued-to-rebound-in-q1-with-multi-strategy-and-equities-funds-still-on-top\/","title":{"rendered":"Hedge Funds Continued To Rebound In Q1 With Multi-Strategy And Equities Funds Still On Top\u00a0"},"content":{"rendered":"\n<ul>\n<li>Multi-Strategy and Equities performed best at 5.78% and 5.42% respectively;<\/li>\n\n\n\n<li>Funds saw an overall weighted average quarterly return of 4.49%;<\/li>\n\n\n\n<li>Net redemptions were markedly lower in Q1.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Hedge Funds Continued To Rebound<\/h2>\n\n\n\n<p><strong>New York\/London, 24 April, 2023:<\/strong> <a href=\"https:\/\/valuewalkpremium.com\/managed-futures-hedge-funds-decline-4-6-in-march\/\" target=\"_blank\">Hedge funds<\/a> continued to rebound with even better weighted average returns in the first quarter of this year than Q4 2022, with Multi-Strategy and Equities funds continuing as the top performers.<\/p>\n\n\n\n<p>Data from the Citco group of companies (Citco), the asset servicer with over $1.8T in assets under administration (AUA), saw an overall weighted average return of 4.49% in the first quarter of this year \u2013 up from 4.11% in Q4.<\/p>\n\n\n\n<p>All fund strategies delivered positive returns with the exception of Commodities at -2.2% and Global Macro at -1.14%. Multi-Strategy and Equities funds bettered their Q4 performance with Q1 weighted average returns of 5.78% and 5.42% respectively.<\/p>\n\n\n\n<div class=\"ca-widget\" data-token=\"db374bac7cf4\"><\/div><script async=\"\" defer=\"\" src=\"https:\/\/secure.money.com\/embeds\/embedder.js?v=1\"><\/script>\n\n\n\n<p>All AUA categories generated positive weighted average returns, with larger funds significantly out-performing their smaller counterparts. Funds with more than $3B of AUA saw a weighted average return of 6.43% in Q1, by far the best-performing size category; in contrast, the smaller categories of $200-500M and under $200M had weighted average returns of 2.28% and 0.83% respectively.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"1088\" height=\"496\" src=\"https:\/\/www.valuewalk.com\/wp-content\/uploads\/2023\/05\/Hedge-Funds-Continued-To-Rebound.jpg\" alt=\"Hedge Funds Continued To Rebound\" class=\"wp-image-2463975\" srcset=\"https:\/\/www.valuewalk.com\/wp-content\/uploads\/2023\/05\/Hedge-Funds-Continued-To-Rebound.jpg 1088w, https:\/\/www.valuewalk.com\/wp-content\/uploads\/2023\/05\/Hedge-Funds-Continued-To-Rebound-300x137.jpg 300w, https:\/\/www.valuewalk.com\/wp-content\/uploads\/2023\/05\/Hedge-Funds-Continued-To-Rebound-768x350.jpg 768w\" sizes=\"(max-width: 1088px) 100vw, 1088px\" \/><\/figure>\n\n\n\n<p>Capital flows were once again negative, with net redemptions from Citco administered funds totalling $4.8B. However, this was lower than the net redemptions seen in Q3 and Q4 of $9B and $8.9B respectively.<\/p>\n\n\n\n<p>Hybrid funds were again the winners in Q1 in terms of investor flows, with $1.4B of net inflows overall \u2013 the only strategy type to experience net inflows for the quarter. Across AUA buckets, all categories saw net outflows; funds between $5B-$10B where the exception, which saw minor net inflows of $300M.<\/p>\n\n\n\n<p>Trade volumes dipped down at the beginning of the year, suggesting managers possibly waited for clarity to emerge following a gloomy global market outlook for 2023. Volumes rose in February, with daily average trade volumes up 13.4% for the month and up again by a further 9% in March.<\/p>\n\n\n\n<p>Citco saw year-on-year growth of almost 20% in Treasury volumes in the first quarter as the impact of <a href=\"https:\/\/www.valuewalk.com\/us-interest-rates-on-the-climb\/\">rate hikes<\/a> around the world helped spark increasing interest in the marketplace. Even with this growth, Q1\u2019s total did not hit the record-setting peak seen in Q4, when volumes climbed above 127,000.<\/p>\n\n\n\n<p><strong>Declan Quilligan, Head of Hedge Fund Services, Citco Fund Services (Ireland) Limited, said:<\/strong><\/p>\n\n\n\n<p><em>\u201cThe first quarter of the year looks promising with hedge fund performance continuing the trend from Q4 with even better overall returns and nearly four-fifths of funds delivering positive performance. <\/em><\/p>\n\n\n\n<p><em>Continuing the main capital flows trend of 2022, Q1 saw redemptions outweighing subscriptions yet again \u2013\u2013 with a surge of net outflows in March outweighing combined net inflows in the first two months of the year. However, the quarter\u2019s net redemptions of $4.8B were markedly lower than previous quarters.<\/em><\/p>\n\n\n\n<p><em>\u201cWith rate hikes continuing so far this year, we expect Treasury activity to remain elevated. As such, barring a marked decline in inflation and reversal of current monetary policy, the outlook for transaction volume growth remains positive.\u201d<\/em><\/p>\n ","protected":false},"excerpt":{"rendered":"<p>Hedge Funds Continued To Rebound New York\/London, 24 April, 2023: Hedge funds continued to rebound with even better weighted average &#8230; <a title=\"Hedge Funds Continued To Rebound In Q1 With Multi-Strategy And Equities Funds Still On Top\u00a0\" class=\"read-more\" href=\"https:\/\/www.valuewalk.com\/hedge-funds-continued-to-rebound-in-q1-with-multi-strategy-and-equities-funds-still-on-top\/\" aria-label=\"More on Hedge Funds Continued To Rebound In Q1 With Multi-Strategy And Equities Funds Still On Top\u00a0\">Read more<\/a><\/p>\n","protected":false},"author":19164,"featured_media":2463976,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6640],"tags":[659073],"states":[],"acf":[],"modified_by":"Umair Tariq","_links":{"self":[{"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/posts\/2463974"}],"collection":[{"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/users\/19164"}],"replies":[{"embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/comments?post=2463974"}],"version-history":[{"count":2,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/posts\/2463974\/revisions"}],"predecessor-version":[{"id":2464107,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/posts\/2463974\/revisions\/2464107"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/media\/2463976"}],"wp:attachment":[{"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/media?parent=2463974"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/categories?post=2463974"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/tags?post=2463974"},{"taxonomy":"states","embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/states?post=2463974"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}