2016 Performance for Trend-Following Hedge Funds

Overall a negative return of 2.64% on $60 billion of investment funds.

It’s amazing that funds with millions (and sometimes billions) of dollars under management, and undoubtedly a well-trained and qualified analysts and traders, deep pockets and presumably excellent risk management, are finding it hard to make a positive return.

Below is a list of a number of trend-following funds showing the monthly performance for November (the month of the US elections) and the year-to-date for 11 months to end of November.  The ‘AUM’ column is ‘Assets Under Management’, in other words the total amount of money that people have entrusted to the fund for the fund to manage.  I am assuming that the funds invest in a variety of asset classes such as bonds, forex, stocks and commodities and I am assuming that their trades are days and weeks in duration (rather than minutes and hours as for me).

Thus, if you are trend-following trader and are making more than -2.64%, than you have effectively done better than the funds’ mean return.  Well done!   You may also want to compare this figure to the 4% annual return being the mean return for all hedge-funds (whether trend-following or otherwise) discussed in a blog post around a month ago.

This list is brought out on a monthly basis by www.automated-trading-system.com and you can subscribe to their release with your email address.


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4 Responses to 2016 Performance for Trend-Following Hedge Funds

  1. David Eppel says:

    I think you’d be appalled at the facade of sophistication with all fund managers who don’t actually do anything like a good job. They talk the talk…… I under-trade(using 1/4 of my pot) and still managed to increase my account 2.5 fold in 4 years. I aim to get much more aggressive in future as I’m playing with the market’s money.

    Liked by 1 person

  2. One pedantic point,
    The -2.64% wasn’t on $60 billion. The -2.64% is a simple average regardless of fund size.
    The average was probably a bit lower as Winton only lost -0.92 and is more than half of all the money.

    I could be wrong but I think the numbers are net of fees, which are typically 2%, so it is possible the hedge funds actually took positive cash out of the market in the last 12 months but clients lost money net of fees.

    Also i presume december results are still to come in which could change things a bit.

    Liked by 1 person

  3. Pingback: Burgers with multi-billion-dollar investment fund insider | Trick or Trade

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