Scoop – Strong Start After Rocky Founding For Biggest Hedge Fund Start-Up

After a record-setting launch, ExodusPoint is already up for the year...

2016 was a landmark year for the hedge fund industry, and not in a good way. During the year, clients pulled an estimated $106 billion from hedge fund managers, the most significant exodus since 2009. These withdrawals followed several terrible years for the hedge fund industry. In 2015, hedge funds as a group reported a loss of 0.7%, despite a positive performance for the S&P 500. In 2016, according to hedge fund data provider eVestment, the hedge fund industry generated an average return of 5.34% for clients, the best performance since 2013. Even this was below the S&P 500 return of 10% or 11.96% with dividends included. Exclusive access to under the radar value hedge fund managers  [caption id="attachment_1947580" align="aligncenter" width="300"] fabiansirni / Pixabay[/caption] The performance led eVestment to brand the hedge fund industry an "industry in crisis," and some media commentators began to speculate that the hedge fund industry as we know it, was living on borrowed time. The industry staged a comeback in 2017. Figures from HFR, the research group, show hedge funds across all strategies gained 8.5% in 2017. Long short equity hedge funds achieved the best returns with an average gain of 13.4%, the best performance in four years. Some high-profile funds even managed to double this average return. TCI, the London-based activist, was up 28.2% for the year. After proving their worth in 2017, sentiment towards the hedge fund industry has changed dramatically over the past 12 months so much so that earlier this year, Michael Gelband, formerly the heir apparent to Izzy Englander at Millennium Management, was able to fire the starting gun on a record hedge fund launch. Gelband reported left Millennium following a falling out with its founder. According to his resignation letter, the fact that he was not being compensated effectively...

Rupert Hargreaves

Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. Prior to his investing and writing career, Rupert began his career as a proprietary currency trader.Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK.Rupert covers everything value investing for ValueWalk

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