Market neutral and global macro strategies dominated this year's hedge fund awards, with the BlackRock Australian equity market neutral fund taking home both the 2012 Australian hedge fund of the year and best market neutral fund awards.
Awards judge and Zenith Investment Partners head of alternative research Daniel Liptak said Australia's market neutral funds have outperformed their global peers amidst persisting volatility.
He said that market neutral strategies have proven to be the cheapest and most effective way to preserve capital.
The strategies diversity coupled with manager scarcity in Australia means they have very limited correlation to the broader equity market, and to each other.
"In volatile, fear-dominated markets, hedge funds remind us of a critical investment principle - that the best way to make money is not to lose it," Liptak said.
"Investors are genuinely considering and using hedge funds to risk align their portfolios and avert loss."
Other winners at last night's annual Cure Our Kids Australian Hedge Fund Awards presentation in Sydney were Optimal Australian Absolute Trust which took out the award for best Long Short and Absolute Return Fund, while Investment Science Access SRA 16 Fund took home the gong for best multi strategy fund
GMO Systematic Global MacroTrust won best global macro / futures fund, with Kapstream Wholesale Absolute Return Income Fund the victors of best fixed income and credit fund.
The award for best investor supporting Australian managers went to The Evergreen Retirement Trust, with Ramius LLC winning best offshore manager operating in Australia and Huon Capital for best emerging manager.
Fellow judge and 358 Australia managing director Simon Ibbetson said Aurora, Optimal, Kapstream, Imperia, Pengana and GMO were funds that emerged as consistent performers.
Optimal and Kapstream both retained their respective winning positions from last year.
"Australia's hedge funds have fully affirmed their role as prudent, sound and necessary parts of investment portfolios and stayed true to their objective-focused roots," Ibbetson said.
