13 April 2021 - 2020 proved to represent something of a renaissance for fund of hedge funds, which delivered an average return of 11.2% for the year and a median return of 9.9%.
In the universe of fund of hedge funds administered by Citco Fund Services companies (‘Citco’), 93% reported a positive year, and 96% of the sample population achieved a positive return in the last quarter of 2020. Despite this, capital flows remained nearly neutral, indicating the possibility of an underappreciated opportunity within the industry.
These are some of the findings from Citco’s 2020 Fund of Hedge Fund Update, which explores the data behind the sector’s strong performance. Please click on the download button to see further insights, as well as a granular overview of how firm size and portfolio positions played into average returns.
At Citco, we continue to analyze key trends within the fund of hedge fund asset class and remain on call to support our clients with specialist expertise and proprietary technologies through 2021 and beyond.