Wednesday, February 8, 2023

Global capital of hedge funds closes 2022 at US$3.83 trillion

The total global capital of high-risk investment funds, known as “hedge funds”, ended 2022 at US$3.83 trillion, a quarterly increase of US$4,000 million, Hedge Fund Research (HFR), a data provider, reported on Friday. for this type of financial instruments.

Despite seeing earnings in the last quarter of the year, these funds saw their 2022 fiscal year hit with volatility, due to the invasion of Ukraine, inflation, interest rate hikes by the Federal Reserve of the United States (FED), the falls of the main indicators of Wall Street and the collapse of cryptocurrencies, the organization said in a statement.

He also specified that the HFRI 500 investable index gained 1.6% in the last quarter of the year and lost 3.37% in all of 2022.

For its part, the HFRI Fund Weighted Composite Index gained 2.26% in its last quarter and saw a drop in fiscal 2022 of 4.2%.

Nonetheless, the Macro 500 Index rose 14.2% in fiscal 2022.

The president of HFR, Kenneth Heinz, stressed that the geopolitical and macroeconomic uncertainties of the past year will also be seen in the first half of 2023, especially “the impact of higher interest rates, generational inflation and expectations of economic weakening world”.

“Leading funds continue to position themselves for a fluid trading environment and accelerating cycles of volatility, with further potential for disruptive dislocations across all asset classes,” he added.

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