On an annualized basis, 2013 performance is on pace to more than double the industry’s returns in 2012, the firm said in its April hedge fund performance report.
The sharp price declines from gold and silver mid-month may have hurt funds with dedicated precious metals exposure, but outside of a select group of funds, the commodities’ sell-off was not a meaningful event across the industry. Commodity strategies again illustrated the group’s aggregate long-bias toward commodity prices. These strategies posted another negative month and remain the only segment of the industry in negative territory in 2013; -0.85% in April and -2.28% YTD.
Long/short equity focused funds are on pace to return over 20% in 2013 after another positive month lifted returns over 6% through the first four months. If returns can continue at this pace long/short equity funds have a chance to produce their best returns in more than a decade. However, given this exceptional performance from directional equity strategies, it is of interest that long/short equity funds had the highest net investor outflows in 2012 and have continued to see outflows into 2013.