Top Hedge Funds for 2023/2024 (2024)

FAQs

What is the hedge fund outlook for 2024? ›

Hedge Funds (HF) are up 4.2% year-to-date as of March 2024, which compares well with diversified global allocations, including 40/60 Equity/Bond portfolios which are up around +2.2% and have higher volatility. HF performance year-to-date was led by CTAs, EM focused and L/S Equity both Directional and Neutral.

One of the most profitable hedge funds of all times, Citadel generated $16 billion in profits for its investors in 2022, and earned $65.9 billion in net gains since 1990, making it the top-earning hedge fund ever.

Overall, the consensus is that hedge funds will continue to grow but will adapt to lower fees, greater use of technology, and increased access to retail investors.

With the threat of recession growing, we examined hedge fund performance during recessionary periods over the last three decades, finding that they have demonstrably outperformed when stocks have declined.

That makes outperforming the S&P 500 on a consistent basis no small task. The one fund that has beaten the index in nine of the past 10 years is the Technology Select Sector SPDR Fund (NYSEMKT: XLK).

Citadel has now made $74 billion for investors since its inception in 1990, more than any other hedge fund firm.

The 2 and 20 is a hedge fund compensation structure consisting of a management fee and a performance fee. 2% represents a management fee which is applied to the total assets under management. A 20% performance fee is charged on the profits that the hedge fund generates, beyond a specified minimum threshold.

What is the most popular hedge fund strategy? ›

Hedge funds experienced their first negative month of the year in April, with a weighted average return of -0.7%, according to new data from Citco, but remain in positive territory for 2024 with a year-to-date weighted average return of 6.5%.

The central bank's “terminal rate” for 2024, or the rate at which its benchmark fed funds rate will peak, went up to 5.1%, equivalent to a target range of 5%-5.25%. That means that the Fed is only forecasting one quarter-point rate cut from the current target range of 5.25% to 5.5%.

In 2024, we anticipate a further concentration of hedge fund flows, with a small percentage of managers likely attracting 90% of net assets within the industry. To succeed, it's insufficient merely to offer a high-quality product with a strong track record.

Analysts project 11.5% earnings growth and 5.5% revenue growth for S&P 500 companies in 2024. Fortunately, analysts see positive earnings and revenue growth for all eleven market sectors this year.

It shows that liquidated and all defunct single-manager hedge funds account for less than a quarter and almost half of all single-manager hedge funds in the database respectively. Moreover, the increase in cumulative liquidation and attrition rates slows down significantly after funds become more than ten years old.