In summary...
Equity l/s underperformed over the past year, with the strategy underperforming directional equities, as well as the broader hedge fund universe.
Equity l/s funds tracked by Aurum lost 10.7% on an asset-weighted basis, compared with a loss of 9.5% in the S&P Global BMI Index, and a loss of 0.4% in the HF Composite*.
At the sub-strategy level, sector l/s was hit hardest, losing 16.4%, while Europe l/s and fundamental equity market neutral (“FEMN”) outperformed, losing 1.6% and gaining 1.3% respectively.
The strategy has demonstrated more worth over longer time horizons, outperforming the broader hedge fund universe over the past 10 years (albeit with higher beta) and outperforming directional equities over the past 15 years.
Equity l/s assets decreased by $80 billion over the year, representing an approximate 12% decrease in assets. Performance accounted for the vast majority of the decrease in assets, with net outflows reasonably contained.
