London, March 14, 2012 – The funds of hedge funds industry entered a new paradigm in 2011 with average performance sinking to a low of -4.26% for the year, with only 2008 being worse (with the global FoHF universe down -17.06% for that year). Despite this, the main difference between 2008 and 2011 is that clients have remained more loyal, and as can be seen by the latest InvestHedge Billion Dollar Survey, asset outflows have been far less violent than they were in 2009.
Despite the continued belief that fund of funds are dead or dying, the top 10 largest FoHFs still allocate more than 10% of the global hedge fund industry’s total assets. And there were nine firms in particular that stood our last year, managing the 11 award-winning funds that earned InvestHedge FoHF Awards for 2011 risk-adjusted performance.
Magnitude Capital walked away with three awards in all – including the prestigious Group of the Year prize as well as winning two of the three Global Multi-Strategy awards for GMS funds with between $100m-$500m in assets and for more than $1bn in assets. Many of the winners had won awards a number of times previously, while four firms took their first InvestHedge FoHF awards for performance during the turbulence of 2011.
Twelve awards in all were made to nine different funds of funds groups with half of the winners based in North America, and half elsewhere. Six of the winning funds came from boutiques with less than $1 billion under management. The median performance of the winners in 2011 was 4.45%, while their median outperformance of their benchmarks was 8.37%.
The Aberdeen Orbita Capital Return Strategy won Arbitrage Fund of the Year for the third time running, having also won in 2009 and 2010. Event Driven & Distressed went to Morrocroft Special Opportunity Fund I, managed by Gorelick Brothers Capital.
Pinnacle Natural Resources took home the Commodities & Natural Resource Award, an accolade it has won three times before, while the Thalìa group of Lugano took home two awards – for Global Macro and for Fixed Income & Credit – in its InvestHedge awards debut.
MMIP Diversified Absolute Return Strategies Fund took home the Global Equity Award, while Persistent Edge Asset Management, which also won an award for three year performance in 2008, this time won the Asian Strategies Award for its Persistent Edge China Partners fund. Lyrical Multi-Manager Fund took home the US equity prize, an award it has also won three times previously.
Despite the tough markets, the flagship Global Multi-Strategy Award continued to have a number of high calibre candidates, with Magnitude Institutional winning the award for funds of $100m-$500m in assets and Magnitude International for funds with more than $1 billion in assets. Another first-time InvestHedge Awards winner was Thybo Asset Management, which won the $500m-$1bn GMS category.
This year’s Long Term Awards, judged over five and 10 years on a risk adjusted basis, will be rewarded at the InvestHedge gala event for Investment Excellence on 3 October 2012 at The British Museum in London. The gala dinner will be held in conjunction with the two-day annual InvestHedge Forum, which already features Ash Williams, executive director & CIO of the Florida State Board of Administration as one of the Keynote speakers that will be held in London on 2-3 October 2012.
The complete list of winners for 2011 by category:
Aberdeen Orbita Capital Return Strategy
Event Driven & Distressed
Morrocroft Special Opportunity Fund I
Fixed Income & Credit
GHF Sicav Fixed Income Arbitrage
Commodities & Natural Resources
Pinnacle Natural Resources
GHF Sicav Global Macro
MMIP Diversified Absolute Return Fund
Persistent Edge China Partners
Lyrical Multi-Manager Fund
Global Multi-Strategy $100m-$500m
Global Multi-Strategy $500m-$1bn
Thybo Asset Management
Global Multi-Strategy >$1bn
Group of the Year
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