Hedge fund results a mixed bag for managers
Hedge fund managers Vertex Capital Management and K2 have recorded performance in excess of 20 per cent for the last financial year, in figures released yesterday by research house Assirt.
Vertex's Relative Value Fund recorded performance of 24.72 per cent while K2's Absolute Return Fund posted 22.59, both easily beating third place getter Colonial First State with its Wholesale Tactical Strategies Fund, which posted 15.73 per cent.
Platinum Asset Management’s performance was hit heavily by international exposure with its International, European and Japan funds posting figures between -5.0 and - 8.5 per cent for 12 months but showed good form for the future with positive peformance around 10 per cent for the past three months.
In fact Platinum’s Technology Fund bucked recent trends posting 14.88 per cent over three months, 0.6 per cent over 12 months and 8.28 per cent over three years.
The figures released by Assirt cover nearly 40 hedge fund products from 13 managers with the funds broken into single strategy, funds of funds and funds with large unhedged positions, all with a minimum one year track record.
Of the 20 single strategy funds the average return was 4.48 per cent while average performance for the fund of funds was 5.89 per cent with Hedge Funds of Australia taking out top spot for performance to the end of June with its Diversified Investments Fund.
Of the nine funds in that category Hedge Funds of Australia (HFA) had six products on offer - Diversified, Conversative and Strategic Investment Funds, available on a retail and wholesale basis.
The funds, on a retail basis recorded solid positive performance of 8.75, 5.4 and 1.3 per cent respectively and on a wholesale basis recorded positive numbers of 9.11, 6.2 and 1.49 per cent respectively.
HFA also offered the same funds without a hedged currency position as managing director Spencer Young says a number of clients had requested currency exposure. These funds however did not fare as well as the funds without currency exposure and posted returns in negative territory.
For the Diversified Fund the performance numbers were -10.09 per cent (wholesale fund) and -9.94 per cent (retail fund) with the Conservative fund at -12.99 and -12.69 per cent and the Strategic fund posting -12.29 and -12.18 per cent for wholesale and retail respctively.
Assirt says it rates nearly 50 hedge and absolute return funds but has not released performance figures for them all as many have yet to post one year performance figures.
AUTHOR
Jason Spits
Recommended for you
Retailisation of private markets such as evergreen funds may seem like appealing options for wholesale and retail investors, but providers risk undermining trust if their products are unclear.
Ethical investment manager Australian Ethical has seen its funds under management rise by a third over FY25 to close out the year at $13.9 billion.
BlackRock Australia’s head of intermediary distribution James Waterworth has taken up a new distribution role at an alternative asset manager, while Antipodes has hired a distribution director.
BlackRock’s iShares ETFs have reported a record first half for inflows, gaining US$192 billion in the past six months, to see overall ETF assets under management rise to US$4.7 trillion as it launches its first active ETF in Australia.
