Monthly Comment Test

Performance Review

Q3:     1.63%

YTD:  8.38%

The fund has posted a positive 8.38% return for 2017, (YTD), marginally behind where we were at this stage in 2016.  We are envisaging a 2017 return in excess of our targeted 10% absolute return per annum. 

What has been a feature of 2017, is the number of funds which we follow which have either soft closed to outside investors, or the fund has hard closed.  Q1, 2017 saw the first manager leave the portfolio, two months later another manager soft closed his fund, and now in Sept a third manager has left the portfolio, (hard close).  From our shortlist of funds which we monitor, a further 5 funds have closed in the last 12 months, making 8 funds closing in total from our list. This highlights the work we do at HedgEmerge in a number of ways. First of all in order to maintain diversification and non-correlation between funds we are constantly sourcing new funds which meet our performance criteria. Secondly, we do initial due diligence on those funds during the observational phase. Thirdly, if the fund is placed into the portfolio we carry out substantial due diligence in order to assess the fund for investment.

For Q3 our Investment Committee has decided to make two replacements to the portfolio, one for the fund which hard closed and one for other reasons which are performance related.

Long Short Global Equity, (Large Caps) have had a runaway year so far in 2017 with a circa 23% YTD performance.  Even the MSCI and S&P YTD performances have done relatively well in 2017.  Interestingly though, we have shown that our overall performance has tracked the HFR and FoF Indicies.  Illustrating the benefits of a diversified portfolio of Emerging Managers, the HedgEmerge Sharpe ratio continues to demonstrate that our return and volatility numbers are considerably better over the last 6 years than the indicies mentioned above.

For any further information regarding HedgEmerge and our results please do not hesitate to contact us.  The proforma results are based on the actual trading records of the funds, who are all live funds sending out audited track records.  Amongst our Managers there are;

  • Long Biased;
  • Market Neutral Managers;
  • Sector managers;
  • Top down managers;
  • Bottom up Managers.

Our diligent selection criteria doesn't aim to find the best manager in the world, but we do aim to consistently make an Absolute Return for our investors on a zero management fee basis and to date we have achieved that aim.