matthew @ keplerpartners . com
+ 44 ( 0 ) 20 3384 8791 + 44 ( 0 ) 7920 052 688
After a few tough quarters for the Alternative UCITS universe , ‘ green shoots ’ look to have firmly taken hold and there are some significant successes to report .
Against an ever-uncertain macro backdrop , performance has been notably strong . The AH Global index was up 0.7 % in Q2 (+ 3.6 % YTD ), generating its seventh consecutive positive quarter despite varied market environments . The breadth of returns has also been impressive , with all strategies positive YTD and pockets of strong alpha generation across the space ( Sharpe > 3 ), particularly among the more bottom-up oriented approaches .
The flows picture has also improved , albeit it is still not a totally clean bill of health , with overall AUM falling by $ 4.3bn ( -1.8 %) in Q2 to $ 235bn . However as is often the case , when you interrogate the numbers further some interesting trends start to emerge .
Managed Futures in particular has seen strong asset growth YTD of 19 % (+$ 1.5bn ), with over 60 % of Managed Futures funds seeing inflows YTD which we take as a sign of a healthy cohort .
It is the opposite picture for Event Driven funds , with almost 70 % of funds seeing net outflows YTD as investors continue to digest the impact of higher risk-free rates on their investment processes and asset allocations . Sector AUM are down to $ 10.7bn ( -20 % YTD ).
On the new launch front we are observing managers emerging from their hibernation , with a number of new launches currently slated for the rest of the year . Outside of these proposed new launches , we are also aware of a number of ‘ tier 1 ’ hedge fund managers looking at the UCITS space again , which should bode well for the rest of the year and into 2025 .
Wishing you all a healthy and happy summer !
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