As Hedge Fund Performance Disappoints, SWFs Gain Popularity

With all the strategies and regional benchmarks logging losses for the second consecutive month, April of 2014 has turned out to be another underwhelming month for hedge fund performance, according to data from Preqin.

Preqin’s May 2014 report titled “Hedge Fund Spotlight” also highlights that sovereign wealth funds are playing an increasingly important role thanks to the substantial sums of capital managed by these investors.

Event-driven strategies are bright spot

In its April 2014 report, Preqin highlighted the overall hedge fund benchmark witnessed positive returns only in February, while January and March posted disappointing performance. However, event driven strategies funds continued to clock impressive returns, adding...