What do you get for 4 straight months of positive performance and an annualized rate of return of nearly 15%? Nearly run out of town, it turns out, with the hedge funds are underperforming drums getting louder and louder of late as traditional stock and real estate investments soar (50% annualized returns). Case in point, the recent Bloomberg headline bemoaning: "Hedge Funds Keep Failing to Deliver on What They're Selling They neither outperform in bull markets nor offer insurance against bear retreats." Never mind that isn't what they are trying to do, per our research here.
Add it all up and you have a complete reversal of 2018, with all the asset classes we track positive in 2019 (thus far). Who will be the first to crack? (our bet is bonds or commodities).
Past performance is not necessarily indicative of future results.
Sources: Managed Futures = SocGen CTA Index,
Cash = US T-Bill 13 week coupon equivalent annual rate/12, with YTD the average of each month's value,
Bonds = Vanguard Total Bond Market ETF (NYSEARCA:BND),
Hedge Funds = IQ Hedge Multi-Strategy Tracker ETF (NYSEARCA:QAI)
Commodities = iShares S&P GSCI Commodity-Indexed Trust ETF (NYSEARCA:GSG);
Real Estate = iShares U.S. Real Estate ETF (NYSEARCA:IYR);
World Stocks = iShares MSCI ACWI ex-U.S. ETF (NASDAQ:ACWX);
US Stocks = SPDR S&P 500 ETF (NYSEARCA:SPY)
All ETF performance data from Morningstar.com
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Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.
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