Against all odds, 2016 shaped up to be a much better year for hedge funds than 2015. Closing out December, our Hedge Fund Universe returned 9.11% compared to the previous year’s return of -2.5%. Performance was largely due to major gains in Information Technology, Financials, Energy, and Industrials. Health Care, the biggest contributor in our 2015 report, was the biggest detractor in 2016. Blame this on Valeant and Allergan, our number one and two worst-performing securities of the year for hedge funds.
In this report, we dissect the Hedge Fund Universe, our proprietary database of 1,100+ fundamentally-oriented and primarily long/short equity hedge funds, to discover the best and worst sectors in 2016, the single-name drivers of performance in aggregate, and the individual winning and losing securities that drove performance throughout the year.
Download The Best and Worst Hedge Fund Stocks of 2016 for more information.