27 September 2021 - Welcome to the Citco Fund Services Companies (Citco) H1 2021 Fund of Hedge Fund Update, where we share our insights into the performance and capital flows of aggregated funds of hedge funds serviced by Citco.
Funds of hedge funds administered by Citco continued the first half of 2021 where they left off after a solid 2020.
Although performance for the six months to June was at a more modest pace than the previous cycle [please see our 2020 Fund of Hedge Fund Update], funds returned an average of 4.2% with a median return of 4.3%.
Larger portfolios with greater diversification fared better in the period than smaller and more concentrated funds. Funds over $1Bn were up 5.1% and funds with over 50 underlying fund holdings returned 5.7% in the first six months of the year. Again, similar to 2020, the vast majority of funds delivered positive returns with 92% showing a positive performance in the period.