Insight
Aurum’s quarterly review – Q4 2024
In summary…
Aurum’s commingled and bespoke fund of hedge funds $US classes delivered positive returns over Q4 2024, with performance ranging from +2.5% to +5.5%. The Aurum funds notably outperformed global equities and bonds, which were down 1.5%* and 5.1%** respectively, highlighting the defensive, non-correlated positioning of the Aurum portfolios. Multi-strategy, systematic, equity strategies and event driven strategies contributed positively, while macro allocations had different impacts in different Aurum funds results.
About Aurum
Aurum is an investment management firm focused on selecting hedge funds and managing fund of hedge fund portfolios for some of the world’s most sophisticated investors. Aurum also offers a range of single manager feeder funds.
Aurum’s portfolios are designed to grow and protect clients’ capital, while providing consistent uncorrelated returns. With 30 years of hedge fund investment experience, Aurum’s objective is to lower the barriers to entry enabling investors to access the world’s best hedge funds.
Aurum conducts extensive research and analysis on hedge funds and hedge fund industry trends. This research paper is designed to provide data and insights with the objective of helping investors to better understand hedge funds and their benefits.
Multi-strategy
Allocations to multi-strategy funds were the main source of attribution in the Aurum funds – all underlying funds performed positively during Q4. Allocations to equities trading, fixed income, and quant strategies all made positive contributions to returns.
Macro
Macro strategies had a mixed impact on performance in different Aurum funds – ranging from slightly negative, to a moderately positive contribution, given the dispersion in underlying fund performance. Discretionary macro funds performed strongly, particularly around the US election. Gains during the quarter came from tactical trading of US equities, currency trading, short Japanese fixed income, and long agricultural commodities. These were tempered by losses in developed market rates trading, metals positions, and digital assets trading.
Systematic
Systematic allocations were accretive to performance. The majority of underlying funds had positive performance, but there was some dispersion. Positive attribution came from funds pursuing machine learning, volatility, and systematic futures strategies. Quantitative equity strategies had varied impacts in different Aurum funds, while energy trading detracted slightly.
Event driven
Event driven strategies had a mixed quarter, but made a modest positive contribution to performance in funds with an allocation to the strategy. All invested funds had positive performance. Despite some regulatory setbacks in high-profile US deals, the tightening of spreads towards year-end as risk appetite returned drove positive performance. Deal closures in a French lottery operator and a Swedish waterproofing manufacturer supported performance.
Equity strategies
Equity strategies contributed positively to performance in funds with an allocation to the strategy. All underlying funds had positive performance, however there was dispersion, with Asia-focused funds outperforming those with a US/European focus.
Conclusion
Strong positive performance in Q4 2024 demonstrates how the Aurum portfolios deliver uncorrelated return streams that can diversify investors’ portfolios amidst market volatility. As we head into 2025, Aurum remains committed to identifying and evaluating skilled managers with robust risk management capabilities and the ability to generate returns across a range of investment strategies and different market environments.
*Equities = S&P Global BMI.
**Bonds = Bloomberg Global Aggregate Bond USD Index.
Bond Index
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Equity Index
The S&P Global BMI (the “S&P Index”) is a product of S&P Dow Jones Indices LLC, its affiliates and/or their licensors and has been licensed for use by Aurum Research Limited. Copyright © 2021 S&P Dow Jones Indices LLC, its affiliates and/or their licensors. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit www.spdji.com. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.
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Disclaimer
This Post represents the views of the author and their own economic research and analysis. These views do not necessarily reflect the views of Aurum Fund Management Ltd.. This Post does not constitute an offer to sell or a solicitation of an offer to buy or an endorsement of any interest in an Aurum Fund or any other fund, or an endorsement for any particular trade, trading strategy or market. This Post is directed at persons having professional experience in matters relating to investments in unregulated collective investment schemes, and should only be used by such persons or investment professionals. Hedge Funds may employ trading methods which risk substantial or complete loss of any amounts invested. The value of your investment and the income you get may go down as well as up. Any performance figures quoted refer to the past and past performance is not a guarantee of future performance or a reliable indicator of future results. Returns may also increase or decrease as a result of currency fluctuations. An investment such as those described in this Post should be regarded as speculative and should not be used as a complete investment programme. This Post is for informational purposes only and not to be relied upon as investment, legal, tax, or financial advice. Whilst the information contained in this Post (including any expression of opinion or forecast) has been obtained from, or is based on, sources believed by Aurum to be reliable, it is not guaranteed as to its accuracy or completeness. This Post is current only at the date it was first published and may no longer be true or complete when viewed by the reader. This Post is provided without obligation on the part of Aurum and its associated companies and on the understanding that any persons who acting upon it or changes their investment position in reliance on it does so entirely at their own risk. In no event will Aurum or any of its associated companies be liable to any person for any direct, indirect, special or consequential damages arising out of any use or reliance on this Post, even if Aurum is expressly advised of the possibility or likelihood of such damages.
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