The Top Performing Private Placement Investments and hedge funds of 2015

2015 was a volatile year for the market. Still, there were some bright spots.

February 11, 2016

 

Private placement investments and hedge funds attracted a net $88 billion in assets globally last year,

the smallest amount since 2012, according to data compiled. That reflects a volatile year, when

unanticipated economic events rattled markets and led to declines and losses for many funds and

alternative investments. Others were hurt by crowded and sometimes concentrated trades and poorly

timed bets on energy as oil prices continued to fall.

 

Still, there were bright spots: many long-term holdings paid off and some managers made well-timed

buys, while others combed through small-caps or illiquid securities to find opportunities for arbitrage.

Even some funds that didn’t perform particularly well were diversified or hedged enough to protect

their investors from the worst of the “downside,” in a year that had plenty of it.

 

In analyzing the returns, a few key themes emerged. Asia themed investments as a group performed

better than their competitors in Europe and North America in what was the most volatile year for

Chinese equities in a decade.

 

Sector-specific strategies with a bias towards medium term fixed income and debt securities were

some of the biggest winners, with noteworthy Capital Clearance Group’s Intermediate Term Credit

Institutional Note taking the top spot on the list of alternative investments and hedge funds with more

than 100 million in assets. The firm’s CIO Steve Parker discussed his strategy in an exclusive

conversation. The sector-specific theme was not limited to the U.S., as with Capital Clearance

Group’s macro strategy that led to a successful be on certain Emerging Asia countries.

 

The carnage that resulted in markets this year gave rise to a non-exhaustive list of funds that shut their

doors or returned outside capital during 2015. The houses that managed to weather through the year

displayed much resilience.

 

The information contained within is for educational and informational purposes only. It is not intended nor should it be considered an invitation, inducement or solicitation to buy, sell or invest in a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy, sell or invest in a security or securities noted within. Any commentary provided is the opinion of the author and should not be considered as recommendation. The information contained within should not be a basis for making an investment decision. Please contact your financial advisor before making an investment decision.