In the second quarter of 2016, hedge fund investors yanked $20.7 billion from hedge funds. That move represents one of the largest drawdowns in hedge fund history. But according to some hedge fund managers, that move may have been premature. The performance of hedge funds rebounded in July 2016. So far, the 2016 year-to-date total is an increase of 3.29 percent, according to Madison Street Capital’s Chief Executive Officer, Charles Botchway. Botchway said the eVestment Hedge Fund Performance Report published those figures.
Hedge fund managers have been under the gun since the beginning of 2016 because of their poor performance in 2015. But investors in Madison Street Capital’s hedge fund have experienced more consistent gains that some of the larger hedge funds. According to eVestment, the total value of assets in hedge fund accounts is more than $2.9 trillion. In spite of the recent exit by some investors, other investors are still allocating money to the funds that performed better than the average in 2015. One of those funds is Madison Street Capital’s hedge fund.
Hedge fund assets dropped below $3 trillion for the first time since May 2014. Commodity strategies are still very active, according to Mr. Botchway and managed futures continue to be the favorite of some hedge fund investors. Redemptions from credit strategies accounted for the dip in assets in July 2016. But interest in commodity funds is still strong, according to Botchway. The current investor dissatisfaction is not new. A similar trend developed in late-2011 from the losses incurred by the European Union’s Greek situation. But during the years between 2010 and 2014, investors allocated more money to credit funds than ever before. Hedge funds will have to adjust to the changes that are taking place in China and Europe, according to Botchway. There may be more hedge funds closing because the global economy is on the verge of a meltdown, according to some economists.
Madison Street Capital is known for being a leader in accounting and financial analysis. The firm also specializes in mergers and acquisitions and debt reorganization. Chief Operating Officer Anthony Marsala has contributed to the success of Madison Street Capital over the last eleven years. Charles Botchway, the Chief Executive Officer, is considered a reputable hedge fund manager that is cautious when it comes to taking risks. He carefully analyzes all risks. Botchway recently announced that Tony Marsala was nominated by the National Association of Certified Valuators and Analysts (NACV) for his visionary strategies, his pioneering achievements, his leadership and his incredible track record in the merger and acquisition industry. Marsala was one of the finalists in 2015, 40 Under Forty Recognition Program that NACV supports every year.