BofA Securities February 2024 Update: Hedge Funds Extremely Bullish On Equities

In the latest BofA Securities Monthly Update, the key topics included the performance of mixed hedge funds in February, the long-seller dynamic industry-wide, the overvaluation of U.S. equities, and elevated dispersion across most strategies.

Mixed Hedge Fund Performance

In February, hedge funds overall returned a mere 0.1%. Quant equities were on top with a 1.1% median return, followed by credit with 0.8%. Event-driven funds delivered 0.5%, while negative returns were recorded from systematic macro (-2.7%) and equity long/short (-0.8%).

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This was the toughest month for the hedge fund industry since October 2023, when the median return was -1.1%.