The Hit Parade August 2022

Mid-month, with a substantial amount of managers reporting August numbers, we have now compiled the best and worst managers per category. There are some very well-known managers on the hist list, especially so within the CTA field. So the chance that you , as an allocator, would have allocated to one of them is comparatible large.

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This is calculated based on our proprietary composite data streams but may contain errors. These are not filtered for Asset Under Management and are ranked on a simple return metric without adjusting for volatility. We only rank funds that have reported returns for the current reporting month. There are definitively better and more complicated ways to determine the best manager.

CTA

While the general CTA tends to be trend-driven, most of the outliers are driven by specific markets or market effects. The dispersion for the best/worst funds is high, but you may learn something about how they and correlated strategies react to further market developments. To the see full CTA list, with dynamic rankings, please see https://nilssonhedge.com/reports/nilsson-report/cta-rankings/ (please note that membership is required).

Market Neutral

Market Neutral is one of the least volatile strategies, where returns tend to accumulate over time, rather than printing lumpy returns on the upside or downside. Factor performance tends to dominate the average performance, but specific funds can be exposed to specific strategies that are not captured by academic factors. To explore our extensive Market Neutral list, with dynamic rankings, please see https://nilssonhedge.com/reports/nilsson-report/market-neutral-rankings/

Equity Long/Short

As per common knowledge, half of the returns for Equity Long/Short strategies are driven by the underlying equity markets. Performance for the best and worst managers is typically driven by idiosyncratic security-specific situations. To explore our Equity Long/Short list, with dynamic sorting and rankings, please see https://nilssonhedge.com/reports/nilsson-report/equity-long-short-rankings/

Event Driven

Event-Driven managers are commonly exposed to various arbitrage/spread risks related to specialist situations securities. Managers with concentrated exposure tend to end up on this list and exploring the drivers of out or underperformance may yield insights. To explore our Event-Driven list, with further rankings, please see https://nilssonhedge.com/reports/nilsson-report/event-driven-rankings/

Fixed Income

Like Equity Long/Short managers, Fixed Income managers are usually driven by the underlying market conditions. For this list, we typically find managers that are sensitive to a specific subsector, and especially managers that are engaged in the lowest part of the capital structure.

To explore our extensive Fixed Income list, with dynamic rankings, please see https://nilssonhedge.com/reports/nilsson-report/fixed-income-rankings/

Risk Premia

Risk Premia managers are commonly implemented well explored and researched systematic strategies. These may be viewed as a general proxy for Hedge Fund exposure. Performance of specific factors may reveal differences and similarities to your own portfolio. To explore our Risk Premia manager collection, with dynamic rankings, please see https://nilssonhedge.com/reports/nilsson-report/risk-premia-rankings/

Crypto

The number of Crypto managers keeps trending lower, but there are some managers that have managed to capture the volatility across the space. We have to applaud the manager that keeps trading despite being down almost 100%. Returns tends to be double-digit (or even triple-digit for the best funds), simply due to the asset class’s volatility.

To explore our extensive Crypto Strategy universe, with dynamic rankings, please see https://nilssonhedge.com/reports/nilsson-report/crypto-strategy-rankings/

Past performance is not indicative of future results.

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