Hedge fund investors using yen-denominated strategies will be cracking open the champagne, judging by recent results.
Japanese yen-denominated hedge funds set the pace in November over their peers, while the industry as a whole chalked up gains of 0.4 per cent in November from the previous month, translating into a year-to-date gain of 9.33 per cent since January, research group Preqin said.
November’s gain is the 13th consecutive month of positive returns, Preqin said.
Yen-denominated funds outperformed all other major currency-denominated funds with a monthly return of 1.78 per cent contributing to a year-to-date return of 12.98 per cent. Comparatively, euro funds performed poorly, chalking up a loss of -0.54 per cent in November, making it the poorest performing top-level currency in 2017 (4.52 per cent).
Equity strategies enjoyed continued success in November gaining 0.73 per cent and helping to bring the year-to-date return to 13.01 per cent. The strategy is on track to potentially doubling its 2016 returns (7.19 per cent).
UCITS funds struggled in November, Preqin said, with a loss of 0.31 per cent, the first negative result for the benchmark in 2017, which could prevent such funds achieving their greatest annual return since 2009. (UCITS funds typically hold the most liquid strategies so they comply with the regulatory requirement to offer investors same-day liquidity.)