2023 sees smaller fund success
Sub-billion dollar hedge funds outperformed their larger peers in a positive year for hedge fund performance overall
Hedge funds delivered positive performance across all main strategies in 2023 to end the year up 8.2% on average, latest With Intelligence data shows.
But in one of several reversals from the 2022 return map, it was sub-billion dollar funds that outperformed their larger peers last year.
Indeed, analysis of With performance data shows a similar trend of outperformance of smaller funds during recent positive years for the hedge fund industry.
Averages aside, a raft of billion-dollar funds notched up strong double-digit returns in 2023, with TCI a big winner among equities and event-driven funds, up 33%. Citadel led multi-managers, up 15%, while Discovery Capital surged 48% in the macro space.
The positive gains that billion dollar funds also achieved in 2022 stood in marked contrast to crushing losses in stocks and bonds.
Equity funds bounced back to lead the way in 2023, up more than 10% on average as stock markets rallied
Matt Smith, With Intelligence Hedge Fund Editor
In another reversal of fortunes, among primary strategies, equity funds bounced back to lead the way in 2023, up more than 10% on average as stock markets rallied, having been the worst hedge fund performers in 2022, despite beating stocks by the widest margin since 2008.
At the other end of spectrum, after a record 2022, CTAs were the worst performing strategy of 2023, hamstrung by March fixed income losses and Q4 trend reversals.