Absolute Hedge

London, 6th February 2024 – Kepler Absolute Hedge (‘Absolute Hedge’), the market-leading research database focused on Alternative UCITS funds, has published its Market Intelligence Report for Q4 2023. The report gives Absolute Hedge’s readership base of professional allocators and UCITS fund managers a holistic view of the latest trends in the Alternative UCITS universe.

The report, produced on a quarterly basis by Kepler’s in-house research team, uses data from Absolute Hedge to shed light on how the popularity of different strategies is evolving within the allocator community, as well as tracking AUM, fund flows and performance.

Matthew Barrett, Partner and Head of Manager Research at Kepler Partners, commented, “2023 presented a mixed picture for the Alternative UCITS sector; the flows backdrop was challenging, with outflows across all strategies, however some individual funds garnered significant inflows, and there were several successful new fund launches.

We have tracked the Alternative UCITS sector since its infancy, and what we see today marks the ongoing maturation of the asset class as it continues to offer investors attractive diversification opportunities amid market turbulence.”

AUM and flows

Though 2023 saw significant outflows of $38bn, spread across most Alternative UCITS strategies, these stabilised in the fourth quarter to around -$2bn or -0.7%. The largest redemptions were experienced in Multi Strategy and Macro strategies, which saw outflows of $7.8bn and $7.6bn respectively. Conversely, resilient investor demand for Managed Futures and Volatility Arbitrage meant that these strategies remained largely immune to the broader trend of outflows, whilst areas such as catastrophe bond funds saw significant inflows.

New launch activity also increased, with 11 funds entering the market in H2 2023, and positive momentum is expected to continue in 2024 with several high-calibre managers planning to launch UCITS vehicles.

Performance

Alternative UCITS funds delivered strong performance in 2023, with Absolute Hedge’s Global Index finishing the year up 4.3% – the third best year of returns since Kepler created the index in 2010. Beta-orientated strategies such as Credit drove this strong performance, whilst uncorrelated strategies such as Managed Futures delivered subdued returns given market turbulence. Looking by fund, strong performers included TMT/Growth Equity funds, Short Volatility and Credit, whereas exposures to China and ESG were core drivers of underperformance.

-ENDS-

Media contact
Catriona Crellin, Head of PR
catriona@keplerpartners.com
0203 887 6915

About Kepler Absolute Hedge
Absolute Hedge is Kepler Partners’ market-leading research database focused on the alternative UCITS universe. The site is designed to help professional allocators navigate this universe of funds. The database is also accessible to the managers of alternative UCITS funds and their service providers. Alongside formal strategy research, Absolute Hedge also publishes monthly performance reports and quarterly universe analysis, available free to all registered users. Kepler has been active in the alternative UCITS universe since 2009 when the sector was in its infancy, giving the firm unparalleled knowledge of the market, its managers and the investors they serve.

https://absolutehedge.com/

Back to News

Contacts

Catriona Crellin

Head of PR

Georg Reutter CFA

Head of Asset Management, Partner

Pascal Dowling

Head of Funds Marketing, Partner