Share to Twitter Share to Linkedin Hedge funds struggled in June, with their losses widening month over month. Hedge funds are in the red again for another straight month Overall, funds administered by Citco declined 2.4% in June, adding to May's loss of 1.1%. Hedge funds recorded negative results in April as well, declining 2.9%. The overall weighted average return was -2.4%, while the median return was -2.1%, a small dispersion which shows that larger hedge funds struggled more than smaller ones. There was also a decline in the number of funds posting positive returns in June. Only 28.5% of the funds administered by Citco were in the green for the month, compared to 42.4% in May. Fund returns by strategy All fund strategies tracked by Citco were in the red for June, with multi-strategy recording the worst performance at -2.8%, followed by equities and fixed income arbitrage at -2.5% and -2.4%, respectively. On the other hand, event-driven … [Read more...] about Hedge Fund Losses Widen As Less Than 30 Percent Of Reporting Funds Were Positive In June
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Why A Recession Could Be Good For Private Equity
Share to Twitter Share to Linkedin For years, hedge funds have been turning to the private markets in search of alpha by launching hybrid funds and other vehicles. These vehicles have provided their investors with exposure to private equity (PE) and other private investments. Now that the public markets have taken a beating, having plunged more than 20% year to date, the search for alpha has become even more critical, not only for hedge funds but for all other investor types as well. Private valuations are also tumbling, although there is more of a lag in the private markets than in the public markets. Recent analysis from Citco Waterfall found that the largest private equity firms are providing the highest returns to investors, with the average rate of carried interest paid to general partners increasing with size. PE: a people business Of course, PE managers' track records play a significant role in investors' selection process. However, the PE … [Read more...] about Why A Recession Could Be Good For Private Equity