Hedge Funds Shone In 2020, Family Offices Eye Higher Allocations

Tom Burroughes

22 January 2021

A barometer of hedge fund returns from research firm showed that these entities chalked up a 16.69 per cent return last year, notching up a 3.99 per cent result in December and a sharp turnaround in fortunes after markets were hammered earlier in 2020.

Equity strategies had the best result for 2020, at 19.59 per cent in 2020, just ahead of event-driven strategies (13.28 per cent) and macro strategies (12.72 per cent), the firm said in a report.

The global hedge fund sector has ended up having a robust 2020, pushing back against some of the difficult times it has experienced in recent years. According to , the world’s biggest asset manager, issued a survey of 185 family offices globally and showed that 38 per cent of them intend to bump up exposure to hedge funds. That study showed that on average, family offices allocate about 35 per cent of their portfolios to alternative asset classes such as hedge funds and private equity.