By Andrea Riquier
Investors pulled over $130 billion out of hedge funds in 2019
Hedge funds returned 6.96%, on average, throughout 2019, according to data out Thursday, lagging the gains enjoyed in the broader stock market.
The data come from Eurekahedge, which compiled hedge-fund performance across four regions and nine strategies, with 85% of hedge funds reporting their November returns as of Dec. 31.
The strongest gains in all regions were found among long-short equity funds, which returned 8.64%. In contrast, the Dow Jones Industrial Averagegained 22.3%, the S&P 500rose 28.9%, and the Nasdaq Composite Indexjumped 35.2% over the course of 2019.
While the broad aggregate averages reported here conceal lots of individual variation, it has been a tough year for hedge funds (link). Big-name investors like David Tepper converted his fund into a family office, returning all outside money back to his investors. Mick McGuire and Louis Bacon, meanwhile, recently closed their funds, with Bacon citing "disappointing results."
Globally, investors pulled $131.8 billion out of hedge funds last year, Eurekahedge said, nearly $59 billion of which was in North America. In contrast, throughout most of 2019, investors plowed approximately $660.8 billion into exchange-traded funds, approximately 98% of which are passively managed (link) investing tools. (That data came from the Investment Company Institute (link), and represents total exchange-traded fund assets as of Nov. 30, 2019, compared with total assets 12 months earlier.)
-Andrea Riquier; 415-439-6400; AskNewswires@dowjones.com
RELATED: A hedge-fund strategy inside an ETF: Good idea? Bad idea? (link)
RELATED: Hedge funds are now outpaying banks for quant talent (link)
RELATED: Hedge-fund giant David Tepper achieves goal as MLS awards franchise to Charlotte, N.C (link).
(END) Dow Jones Newswires
01-02-20 1555ETCopyright (c) 2020 Dow Jones & Company, Inc.