Legends Fund gained 3.25% in January, making a solid start to the new year and outperforming the HFRX Global Hedge Fund (EUR-hedged) index (‘HFRX Index’) which was up 1.81%.
One way of managing our investors’ expectations with respect to Legends Fund’s performance is in reference to the HFRX Index. Consistently over time, we will be more or less in line with the index when the index is flat or negative. We think this performance is a proxy for when it is a more difficult environment for hedge funds to perform. However, when the HFRX Index reports solid numbers, our portfolio of managers tends to achieve significant outperformance. In the difficult year 2018 Legends Fund did well measured by this yardstick as we outperformed the HFRX Index by 2.5%. More typically however, this year, up to Feb 13th, with a much better hedge fund performance we are already 2.6% ahead of the index.