- Hedge funds from two asset managers, BlackRock and Pimco, are trailing the average fund this year.
- One fund in BlackRock’s lineup beat the 10% return that the average hedge fund delivered through July.
- Pimco’s $5.8 billion Tactical Opportunities Fund saw a 9.4% increase year to date at the end of July.
Some of BlackRock’s hedge funds have seen stronger performance so far in 2021 than earlier this year, but four of its five strategies are still underperforming the average fund.
The world’s largest asset manager’s $601 million Emerging Companies hedge fund, led by Dan Whitestone, grew 11.5% year to date as of Aug. 6, according to HSBC’s latest Hedge Weekly report. It was the only fund in BlackRock’s lineup to beat the average hedge fund, which returned 10% through July, according to Hedge Fund Research.
BlackRock’s flagship hedge fund, the $1.67 billion Obsidian fund, grew 8.2% year to date as of Aug. 6. The Stuart Spodek-led fund invests in rates, mortgages, and corporate credit across fixed-income markets. The fund was slammed in early 2020, falling 20% as of March 20, 2020.
Its $230 million UK Equity hedge fund, led by Nigel Ridge, returned 2.4% for the year through Aug. 6, the $1.67 billion Fixed Income Global Alpha fund returned 4.5% over the last seven months to the end of July, while its $903 million 32 Capital Master fund gained 6.3% over the same period, HSBC’s data shows.
BlackRock isn’t the only large asset manager with hedge funds that haven’t beaten the average hedge fund’s performance.
For its part, Pimco’s $5.8 billion Tactical Opportunities Fund saw a 9.4% increase year to date at the end of July. The fund raised hundreds of millions in 2020 as it told investors that it was one of the best investing environments in decades. The fund is led by Dan Ivascyn, Russell Gannaway, and Sharad Bansal.
Its $2.7 billion Global Credit Opportunity Fund Series 1 returned 5.7% for the year through the end of June.
However, Pimco’s $400 million Absolute Return Strategy IV Offshore Fund II dipped 0.76% over the same period.
BlackRock and Pimco declined to comment on performance.