The average multi-strategy hedge fund gained 1.3% in April as multi-discipline managers continued to build a strong six months following a challenging start to the pandemic period.
HFM’s Multi-strategy Composite Index currently leads the global composite YTD (7.5% to 7.4%) and on a three-year annualised basis (8.6% to 8.2%) but trails over 12 months (24.6% to 25.9%). Despite robust recent performance, investors have favoured other strategies of late, with HFM data showing that multi-strategy managers saw outflows in April when the wider industry added more than $25bn.
Multi-strategy also saw $20.6bn of net outflows in 2020, suggesting that some investors have remained sceptical over its merits.
However, HFM research from the end of 2020 found that all investors planned to increase their allocations to multi-strategy in H1 2021, with all investor types planning notable net positive.
However, if aggregated data suggests investors are lukewarm to the strategy, generally, it is because some have had their interests drawn to larger funds: several brand-name multi-strategy firms have been aggressively adding headcount in recent months following periods of strong performance and inflows, according to HFM intel.