Hedge funds reach midyear with mishmash performance

By Carolina Mandl and Nell Mackenzie

NEW YORK/LONDON (Reuters) -Hedge funds delivered a mixed first-half performance, with macro funds Caxton Associates and Brevan Howard struggling to maintain gains while a couple of multi-strategy and systematic funds went gangbusters, according to sources and public data.

Andrew Law's Caxton Associates, which places bets on macro economics, finished last month flat after a yearly performance to May-end that was up 4%, two sources familiar with the matter said.

Hedge fund Brevan Howard's Master Fund rose 0.90% in June, but still ended the first half of 2024 down 1.56% for the year, a source with knowledge of the data said.

The source did not give a reason for the performance from the $35 billion hedge fund.

Not all macro strategies struggled. Bridgewater Associates' flagship fund was up 14.4% this year through June 26, according to a source.

The HFR Global Hedge Fund index capped the first half with a meager 2.89% gain. A first sample of hedge fund numbers obtained by Reuters shows there was some performance diversion in the industry during a period in which a tech boom-led global markets to a strong performance.

"There was such a dispersion between returns that the benchmarks don't always tell you exactly how a certain strategy is doing," said Lilly Knight, K2 Advisors head of investment management.

Some multi-strategy hedge funds were able to post double-digit returns in the first half of the year.

Cinctive Capital was up 11%, as its bets around the impact of artificial intelligence on energy, utilities and technology paid off.

Schonfeld Strategic Advisors' flagship fund rose 10.3%, while the AQR Apex Strategy gained 13.5%. All of them beat giants Citadel and Millennium Management.

Global fundamental long/short equities hedge funds posted gains of 7.55% in the first half, according to a Goldman Sachs prime brokerage note.

Below the surface, the top performers posted almost 15% in gains, while the underperformers fell 2.22%.

On average, hedge funds struggled to keep pace with the MSCI's 47-country world stock index, which rose roughly 11% in the first half.

The S&P 500 soared 15% in the same period, mainly due to a handful of megacap stocks such as Nvidia.

"There are hedge funds that own the megacap names that rallied in the first half of the year, but they're not owned at anything close to market cap weight," said Craig Bergstrom, chief investment officer of Corbin Capital.

Philippe Laffont's Coatue Management rose 9.2% in the first half, a source said.

Aspect Capital's Diversified fund, which trades systematically, returned 14.27% for the year to end June, said a source. The hedge fund, which currently oversees $9.1 billion of assets, made gains in agricultural markets, currencies and stocks.

Kairos Partners' senior portfolio manager, Mario Unali, said that going forward, hedge funds will face more challenges after a strong rally. "Markets are richer than a year ago and uncertainty is now higher," he said.

Check below some hedge fund performances:

Hedge fund Performance - H1

Schonfeld Strategic 10.3%

Partners

Schonfeld Fundamental 11%

Equities

Citadel Wellington 8.1%

Citadel Tactical Trading 13.7%

Citadel Global Equities 9.9%

Citadel Global Fixed 2.2%

Income

Bridgewater Pure Alpha 14.4%*

Marshall Wace Eureka 10.4%

Marshall Wace Market 14.47%

Neutral TOPS

Marshall Wace Global 8.06%

Opportunities

Winton Multistrategy 10.1%

Winton Diversified Trend 9.5%

Trading

Aspect Capital’s 14.27%

Diversified

Millennium Management 6.9%

Coatue Management 9.2%

Cinctive Capital 11%

Caxton Associates 0%

Dymon Asia Multi-Strategy 12.4%

Investment Fund

AQR Apex Strategy 13.5%

AQR Managed Futures Full 14.9%

Volatility Strategy

AQR Delphi Long Short 16.3%

Equity Strategy

Brevan Howard -1.56%

*Through June 26

(Reporting by Carolina Mandl in New York and Nell Mackenzie in LondonAdditional reporting Summer ZhenEditing by Lisa Shumaker, Jan Harvey and Matthew Lewis)