New York / Dublin, July 21, 2022
In 2020/2021 Centaur’s clients saw exceptional fund performance with most strategies producing positive returns. The stand-out performers were long/short equity strategies with strong gains in a number of sectors including technology, emerging markets and healthcare.
In 2022 we have seen a turbulent first half of the year with a significant sell-off of technology stocks, Russia’s invasion of Ukraine, policy changes and persistent market volatility. Overall, it has been a tough year so far for hedge funds. According to market data sources, hedge funds posted lower returns during Q1 compared to their strong 2021 performance. However, there have been some bright stars: For example, CTAs and commodities funds have performed exceptionally well, delivering a return of 14.59% with one Centaur client generating returns of 32.7% YTD. Aurum Research also reports some strong performing strategies for hedge funds in 2022 including:
- Quant macro delivering a return of 13.27%
- Global macro strategies delivering a return of 6.3%
- Statistical arbitrage strategies delivering a return of 6.23%
- Event driven strategies delivering a return of 1.6%.
Unlike 2020/21, many equity-based and fixed income strategies have struggled in the first half 2022, but many of Centaur’s clients are bucking the trend by enjoying strong performance. One such client deploying a long / short equity strategy has enjoyed returns of 19.2% YTD while several are reaping returns of over 10%.
Ronan Daly, Founding Partner of Centaur, comments: “The rise in global rates, market volatility along with geopolitical factors such as the war in Ukraine have made for a tough environment for hedge funds in the first half of the year. We are pleased that at Centaur, many of our clients have bucked this trend with about one third of our hedge fund clients in positive territory and many only marginally down year to date.”
He continues, “We are delighted to see the resilience of our clients during a challenging period, both in North America and Europe. Our team is fully committed to delivering a quality client experience that continuously evolves with our clients. This has been proven as we adapt to the market volatility that we are seeing in 2022. We are in a great position to support our clients through the challenges and growth ahead.”