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Asia Funds Lead Hedge Fund Gains In 2017

eVestment, a data and analytics provider to the traditional and alternative investment industries, released its December 2017 hedge fund performance report today, reporting full year data for calendar 2017. Amongst the findings were that hedge funds focused on India and China were the strongest overall performers in the industry last year. India-focused funds returned +35.01% for the year, compared to +4.53% in 2016 and +3.87% in 2015. China-focused hedge funds came in a close second for the year, returning +34.82% in 2017, up strongly from the negative performance of -5.39% in 2016 and the +9.49% China-focused hedge funds returned in 2015.

Other interesting points from the report include:

  • From a regional perspective, Asia outperformed the rest of the world in hedge fund returns, with Asia-focused hedge funds overall returning +21.47% in 2017. Africa-Middle-East-focused funds came in second from a regional perspective, returning +16.42% in 2017. North-America-focused and developed-Europe focused funds both returned almost +8.4%.
  • For funds domiciled in Asia, there was a similar strong-return story. Asia-domiciled hedge funds returned +18.60% in 2017, compared to +9.34% for hedge funds domiciled in the United Kingdom, +7.87% for hedge funds domiciled in the United States and +7.08% for hedge funds domiciled in continental Europe.
  • Among primary strategies, Long/Short Equity funds were the big winners in 2017, returning +11.79% for the year. Other stand-outs among primary strategies included Quantitative Directional Equity funds, which returned +9.29% for the year, and Event Driven-Activist funds, which returned +8.49% for the year.
  • Among primary markets, Equity-focused funds were strong performers in 2017, returning +13.14% for the year.
  • Across the industry, over 80% of the hedge funds tracked by eVestment delivered positive results in 2017 and 60% of funds improved their performance compared to 2016 results.