2022 was a turbulent year for global markets, driven by the war in Ukraine, rampant inflation and rising interest rates. The average hedge fund was down 0.64% last year based on a diversified set of funds tracked by BNP Paribas Capital Introduction. The industry saw net outflows, with the Hedge Fund Research Reporting total hedge fund assets to be US$3.8 trillion, down from US$4 trillion, following US$55 billion of net redemptions.
In the latest Alternative Investment Survey, titled ‘Credit where it’s due’, BNP Paribas Capital Introduction surveyed 185 allocators across 19 countries (60% from the Americas, 37% from EMEA and 3% from APAC) in December 2022 and January 2023 who invest or advise on US$1.4 trillion on hedge fund assets, representing over one-third of the industry asset under management. Its objective is to better understand sentiment regarding performance and asset allocation plans to hedge funds and other alternative investments.
Some key findings of this year’s report include:
- Bringing back the ‘hedge’: hedge funds generated positive returns while global equity and credit markets crashed
- Hedge fund asset flows are expected to make a turnaround in 2023
- Multi strategy and discretionary macro to top the charts in 2023 with commodity trading advisors (CTAs) expect to retract
- The credit U-turn: credit, one of the least in demand strategies at the start of 2022, emerges as the most sought-after hedge fund strategy this year
To learn more, listen to this podcast from Marlin Naidoo, Global Head of Capital Introduction at BNP Paribas.
For information on the full report, please contact BNP Paribas Capital Introduction at bnp.paribas.cap.intro@bnpparibas.com.