Preqin’s Latest Report Shows Q3 Worse than Other Reports

New York (HedgeCo.net) – Alternative asset industry data and intelligence firm Preqin released its latest report and it showed that hedge funds as a whole fell almost 4%. Despite the overall performance, there were a few bright spots with Commodity Trading Advisors and Relative Value funds in particular doing better than most strategies. The average return in the third quarter for CTAs was 0.24% while the average relative value fund gained 0.26%.

The worst performances for the quarter came from equity strategies with an average loss of 6.73% and event-driven strategies which lost 4.38% on average. This is a bit of a reversal of fortune as CTAs had lagged other strategies during the first half of the year while equity strategies and event-driven strategies had been among the leading performers.

Despite the troubling performance and the volatility experienced in global markets, hedge fund launches increased by 10% over the second quarter. The bulk of these new funds were focused on either equity strategies or macro strategies. Those two categories accounted for 35% and 30% of the launches in Q3.

Among the most sought after strategies, long/short equity got the most votes with 44% of investors seeking a fund with such a strategy over the next 12 months. Macro strategies finished second in this category as well with 26% of the vote going to the strategy.

Rick Pendergraft
Research Analyst
HedgeCoVest

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