Global equity markets continued to advance in third quarter 2017. This is in stark contrast to recent years when US markets were generally the top performer. This quarter, we discuss the positive effect this reversal had on fundamental strategies, and the challenges momentum-based managers confronted.
This chart book presents representative long-only and hedge fund manager performance for third quarter 2017. The median Global ex US Small-Cap Equity manager posted the highest median return for both third quarter 2017 and the one-year period ending September 30, 2017, returning 8.6% and 23.6% for the respective periods. The median Cash Management manager posted the lowest median return for third quarter 2017 (0.3%), while the US REITs median return was lowest for the one-year period ending September 30, 2017 (0.4%).
This chart book presents representative long-only and hedge fund manager performance for second quarter 2017. The median Global ex US Small-Cap manager posted the highest return for the quarter (8.9%), while the median Emerging and Frontier Markets manager posted the highest return for the trailing one-year period (24.0%). The median Cash Management manager posted the lowest return for the quarter (0.3%); for the trailing one-year period, the median Global ex US Bonds manager posted the lowest return (-0.6%).
Major hedge fund strategies diverged in performance in second quarter 2017. In this edition, we examine the progress in the long/short equity space and challenges in the macro landscape.
Equity markets outperformed other asset classes, while monetary policy expectations continued to negatively impact bond markets during the fiscal year ending June 30, 2017. This brief chart book looks at returns and other market metrics for fiscal year 2017.
This chart book presents representative long-only and hedge fund manager performance for first quarter 2017. The median Emerging and Frontier Markets Equity manager posted the highest return for the quarter (11.9%), while the median US Small-Cap Value manager posted the highest return for the trailing one-year period (23.7%). The median Cash Management manager posted the lowest return for the quarter (0.3%); for the trailing one year, the median manager in only one strategy, Global ex US Bonds, posted a negative return (-1.3%).
With investor sentiment toward long/short hedge funds historically low, we review the key factors for re-underwriting managers in a portfolio and discuss the outlook for the strategy.
This chart book presents representative long-only and hedge fund manager performance for fourth quarter 2016. The median US Small-Cap Value manager posted the highest median return for fourth quarter 2016 (10.7%) and the year (24.2%). The median Global ex US Bonds manager posted the lowest median return for fourth quarter 2016 (-6.9%), while the Global Growth Equity ex US median return was lowest for the year (-1.1%).
The fourth quarter update examines the impact of the US presidential election and reviews hedge fund performance for the calendar year, which saw a notable positive shift in event-driven strategies.
This chart book presents representative long-only and hedge fund manager performance for third quarter 2016.