Funds of hedge funds administered by Citco continued to see significant growth in H1 2021, following a “solid 2020”, the global hedge fund administrator cites.
Similar to 2020, the vast majority of funds delivered positive returns with 92% showing a positive performance in the period.
The strategy continued to attract new capital during the period with approximately US$2.5 billion in net capital flows, Citco finds.
Although performance for the six months to June was at a more modest pace than the previous cycle, funds returned an average of 4.2 per cent with a median return of 4.3 per cent.
Larger portfolios with greater diversification fared better in the period than smaller and more concentrated funds, Citco adds.
Funds over US$1 billion were up 5.1 per cent and funds with over 50 underlying fund holdings returned 5.7 percent in the first six months of the year.
Established in 1948, Citco is headquartered in the British Virgin Islands and operates across North America, Europe and Asia. Citco Global Securities Services was acquired by Clearstream, the post-trade arm of Deutsche Börse Group, in 2014.
