Market turmoil splits hedge funds into macro winners and tech losers

Financial Times

War and rising inflation widen the gap between best and worst performers

Market turmoil driven by Russia’s invasion of Ukraine and rising inflation has sharply divided the hedge fund industry, with macro hedge funds celebrating one of their best-ever starts to a year while technology and growth funds rack up double-digit losses. 

The top 10 per cent of hedge funds gained an average of 24.3 per cent in the first quarter, while the bottom decile dropped by 15.4 per cent, according to HFR, which tracks the sector. The dispersion is one of the widest since the financial crisis. 

The industry as a whole suffered losses of 0.3 per cent for the first quarter, as measured by the HFRI fund-weighted index, and larger funds tended to do better than small ones. Continue reading...

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Important disclosures: Disclosures: This content (the "Insights Page") is provided by Weiss Multi-Strategy Advisers LLC ("Weiss"). The views expressed on the Insights Page are for informational purposes only and are subject to change without notice. Information on the Insights Page has been developed internally and is based on market conditions as of the date of the original post on the Insights Page from sources believed to be reliable. Nothing on the Insights Page should be construed as investment, legal, tax, or other advice and should not be viewed as a recommendation to buy or sell any security or adopt any investment strategy. Past performance is no guarantee of future results. Please consult your own advisers regarding business, legal, tax, or other matters concerning investments. Weiss has no control over information at any external site hyperlinked on the Insights Page. Weiss makes no representation concerning and is not responsible for the quality, content, nature, or reliability of any hyperlinked site and has included hyperlinks only as a convenience. The inclusion of any external hyperlink does not imply any endorsement or ongoing monitoring by Weiss of any hyperlinked site. Investing in securities is speculative and involves substantial risk of loss.