Altin FoF outperforms index, but lags behind equities
Swiss fund of hedge funds Altin has been outperforming the HFRI fund-of-funds composite index all year. But its returns are nowhere near those posted by the S&P 500.
The Standard & Poor’s equity index has risen almost 12% so far this year. The HFRI index, in comparison, has only gained 1.75% year to date.
Altin has beaten the fund-of-funds index, with a return of 2.58% year to end of August. But this indicator is barely a quarter of the S&P 500 gain.
A similar theme can be observed across the board. This year, only about one in every 10 hedge fund managers is beating the S&P 500 index, according to Goldman Sachs.
The average hedge fund return of 5% was less than half that of S&P 500’s 12% rise and only half the returns of the average large cap mutual fund this year.
Over the longer term, however, things look more promising for funds of hedge funds.
Since its inception in 1996 to end of July, Altin has outperformed both the fund of funds index and leading equity indices.
While MSCI World, for example, gained 51.20% over this period, the HFRI fund of funds index made more than double those returns. Altin comfortably beat both, with gains of 163.9%.
Altin holds one of the world’s longest track records as an exchange-listed fund of hedge funds. It listed in Switzerland in 1996 and in London in 2001. It manages $270m in in over 30 multi-strategy hedge funds globally.
Its highest exposure is to equity long short and macro strategies, with 28.4% and 22.7% of total assets in each, respectively.
Geographically, over three quarters of the assets are invested globally. It also has a high exposure to the US, which has been the most popular region for hedge funds investors this year.
Altin follows an active allocation strategy and carefully screens managers in order to achieve capital protection and risk control.