Fund administrator Citco reported that funds of hedge funds had positive returns and inflows in the first half of 2021.
The firm found that the FoHFs generated roughly $2.5 billion in net capital inflows for the first six months of the year. Returns were modest over that same time frame funds gained an average of 4.2% with a median return of 4.3%.
Funds with over $1 billion had better performance of 5.1% and funds with over 50 underlying fund holdings returned 5.7% in the first six months of the year. The vast majority of funds delivered positive returns, with 92% showing a positive performance over the period, which was similar to what funds reported in 2020.
Global macro strategies shown in the first half with gains of 8.63%, according to the Citco report.
Earlier this month, Citco, the hedge fund industry’s largest asset servicer with $1.6 trillion in assets under administration, said returns remained strong in Q2 and investor inflows were gaining ground as well.
Gross subscriptions for Citco-administered funds were $50.5 billion with clear preferences for multi-strategy, global macro, private equity hybrid funds and funds of funds.
