The Preqin All-Strategies Hedge Fund benchmark gained +1.91% in February, continuing hedge funds’ strong start in 2019. This has pushed the YTD return to +5.13% and increased the 12-month return to +0.85%. For the first time since April 2018, single-manager hedge funds, funds of hedge funds, liquid alternatives and CTAs all made gains in the same month.
Equity and event driven strategies both had a strong month, returning +2.44% and +2.24% respectively. Macro strategies struggled in February and were the only top-level strategy to post a loss (-0.75%), a reversal of the +1.68% returned in January. All top-level strategies have a positive YTD return at present, and equity strategies lead the way with +7.09%.
Of those tracked by Preqin, the only top-level currencies to make gains in February were USD- (+1.80%) and EUR-denominated (+0.63%) hedge funds. Notably, BRL-denominated hedge funds ended their positive run with a loss of 0.72% – their first loss in six months, pushing their YTD return to +2.85% and their 12-month return to +11.47%. Hedge funds denominated in JPY have had a relatively weaker start to 2019 with their February benchmark posting -0.85%, affecting both their YTD (+0.26%) and 12-month (-7.89%) return.
Based on size classification, all hedge funds built on their January returns, with emerging hedge funds posting the highest returns in February (+2.24%), closely followed by large hedge funds (+2.20%). Medium and small hedge funds did not fare as well, returning +1.73% and +1.38% respectively.
The full Hedge Fund Performance Update: February 2019 factsheet breaks down the benchmarks by strategy, region, size and more.
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