Hedge funds have experienced a great third quarter and continue to do well in October 2021. Partially due to the surge in volatility, the hedge fund industry is close to reach a milestone of $4tn in AuM. Nevertheless, the strategy of hedge funds is of utmost importance when determining how well a hedge fund is doing. This is in particular true for 2021. Crypto and equity hedge funds tend to profit the most from the current market ecosystem, as their asset class is surging at a rapid pace. Global macro and fixed income-based strategies have a more challenging ecosystem. Figures 1 to 6 show the returns as of Q3 2021 of the different SMC Strategy Indices in comparison to other relevant benchmarks for the specific strategy. Cryptocurrency strategies unsurprisingly did the best this year with the average strategy being up 177%. All strategies in that area cover the best performing strategies of the year with Token Liquid and Token being the best among them with a performance of 316% and 260%. The SMC Equity Strategy Index achieved a lower return than some of its benchmarks in 2021 with 7% as of Q3 2021. The best performing equity strategy is Equities US Activist Event Driven which is 27% up in 2021. With regards to the less beneficial ecosystems for fixed income and global macro related strategies, the SMC Strategy Indices did well. The SMC Credit Strategy Index is up 4.49% an outperforms almost all benchmarks shown in Figure 2. The situation is even better for the SMC Global Macro Strategy Index that achieved a YTD of 37.40%, thereby outperforming any benchmark by a lot as shown in Figure 4.
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