Aurum Hedge Fund Industry Deep Dive_2022 Review

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 It has been an extremely challenging year from both a markets and geopolitical perspective. If one were to sum up 2022 in two words, they could be: ‘extreme moves’. Risk assets in general had a terrible year. US equity markets saw the worst annual performance since the Global Financial Crisis (“GFC”) of 2008 and it’s the fourth worst annual performance since World War II; global bond markets went into a bear market for the first time in 70 years. Cryptocurrencies collapsed. In March, a massive short-squeeze saw nickel prices surge and the London Metal Exchange suspend trading. March and April were the worst two months for US Treasuries this century, and four of the worst months this century for European sovereigns came last year. The UK saw the biggest tax cuts in half a century; sterling hitting all-time intraday lows versus the dollar; spiking gilt yields, Bank of England intervention in markets, and three Prime Ministers in the space of seven weeks. US equity markets saw the worst annual performance since the Global Financial Crisis (GFC) of 2008 and the fourth worst annual performance since World War II; global bond markets went into a bear market for the first time in 70 years. There were very few places for investors to hide. The US dollar was a safe haven; it was up versus every other G10 currency. Commodities as an asset class bucked the trend, particularly in oil, wheat and European natural gas. Elsewhere, it was a story of losses across all asset classes. In the world of hedge funds, the beneficiaries have been those that have capitalised on these large directional moves, particularly macro, CTAs and commodity managers.