Oct 10, 2019

Hedge funds continue to underperform

Data: eVestment; Table: Axios Visuals

Hedge funds saw overall negative returns for the second month in a row in September and ended the quarter slightly negative, underperforming both the S&P 500 and a fund tracking 50% stocks and 50% bonds from around the globe, per eVestment data released Wednesday.

The big picture: Diversity within hedge funds continued to be a major theme, as fixed income and credit funds delivered positive gains last month, but broad financial derivatives funds returned losses of nearly 4%, dragging down the overall industry figures.

  • Size was a major diversifier again, with the 10 largest hedge funds generating solidly positive returns, and the 10 largest long/short funds turning in the best overall performance by size during the month.

Of note: Russia and China-focused funds have been the best performing funds of all types tracked by eVestment so far this year, delivering returns of nearly 16% and 15%, respectively.

Go deeper: The hedge fund moment is over

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Hedge funds see 6th consecutive quarter of outflows

Adapted from eVestment; Chart: Axios Visuals

Hedge funds saw overall negative returns for the second month in a row in September and investors continued to pull their money out, data from research firm eVestment shows.

Why it matters: It’s the latest piece of negative data for an industry that appears to have its best days behind it.

Go deeperArrowOct 29, 2019

Investors sell stocks and hide cash in money market funds

Data: Investment Company Institute; Chart: Andrew Witherspoon/Axios

Investors moved an additional $20.2 billion into money market funds last week, while pulling $13.8 billion out of equity funds, data from the Investment Company Institute shows.

Why it matters: The increased desire for money market funds, which are ostensibly savings accounts, has come as yields on the 10-year Treasury note fell from 2.51% on April 3 to 1.59% on Oct. 2, showing it's fear rather than greed driving fund flows.

Go deeperArrowOct 11, 2019

Venture capitalists on track for $100 billion in startup investments

Photo: JOSEPH EID / AFP

Venture capitalists are on pace to invest over $100 billion in U.S. startups for the second straight year, including a record number of rounds more than $50 million. This might be the industry's high-volume mark.

The big picture: The dizzying numbers have been driven by an influx of new money that has helped companies stay private longer. But much of that new money comes from what I've previously referred to as "VC tourists" — or investors for whom startups aren't their core competency.

Go deeperArrowOct 10, 2019