Global hedge fund research firm HFR said its investable HFRI 500 Fund Weighted Composite Index rose by 1.3 per cent in July to cut its loss for the year to -2.7 percent – with the gains being driven by a recovery in equity hedge and event-driven strategies, which had generally suffered steep declines in the market sell-offs earlier in the year.
Preqin’s Q2 2022 Private Equity Report shows private equity fundraising and deal activity falling fast – with total capital raised in the quarter of USD119 billion representing a drop of more than 50 per cent compared to the same quarter last year, PE deal value falling by 44 per cent year-on-year to USD131.2 billion and exit value tumbling by almost 52 per cent on a year-by-year basis to USD150.7 billion.
The company said the latest fundraise involved a diverse group of international investors, with strong participation from existing and new blue-chip investors, sovereign wealth funds, family offices, pension funds, and asset managers.
The firm’s research – which analysed the investment perspectives of 770 institutional investors, who are collectively responsible for USD27.5 trillion in assets and from 28 locations around the world – shows that almost half of these leading investors now have a preference for sustainable investments focused on impact.
Hedge fund managers declined -1.00 per cent on an equal-weighted basis and -1.18 per cent on an asset-weighted basis in April. Hedge funds encountered a confluence of headwinds stemming from the escalating Russia-Ukraine war, COVID-19 lockdowns in China and aggressive monetary policy tightening by global central banks to combat rising inflation. On a year-to-date basis, global hedge funds were down -2.08 per cent over the first four months of 2022.
The launch of the new Advent GPE X fund – which reached its hard cap in investor commitments after only six months in the market – comes at a time when global private equity fundraising appears to be slowing as investors become increasingly cautious against a backdrop of mounting macro-economic challenges and geo-political pressures.
Around 80.1 per cent of global hedge funds have outperformed the S&P 500, while 44.4 per cent of them have generated positive returns in April. On a year-to-date basis, global hedge funds are down -1.83 per cent, outperforming the S&P 500 which returned -13.31 per cent over the same period.
Value stocks are significantly outperforming growth stocks and with investors renewing their focus on previously unloved value plays after the growth-focused equity market dominance of the past several years.
The three partners, who aim to invest EUR100 million each in a fund that has a target size of EUR1 billion, combine a unique set of industry, risk, and financial expertise to drive structural change.
Domiciled in Luxembourg, the UCITS-compliant fund is a sovereign bond vehicle that invests across developed and emerging markets by allocating capital to countries based on their approach to managing carbon emissions. It is classified as Article 9 under SFDR guidelines and benefits from an Advisory Board of climate experts.
