Beverly Chandler, Opalesque London: Looking back on March hedge fund performance, hedge fund investment specialists FRM found that hedge fund performance across the board was largely flat with returns varying considerably through strategies. In FRM’s Early View the firm quotes the HFRX Global Hedge Fund Index as ending March 0.02% lower.
The firm found that some of the technically-oriented managers produced some of the
best returns over the month. FRM says: "The decrease in correlations, both
between and within asset classes from their highs at
the end of 2011 has been helpful to the run of good
returns from Equity Statistical Arbitrage managers".
Other out-performers included Equity and Long Short Credit managers with net
exposures at the lower end of the spectrum who were rewarded for their caution. March saw managers not materially increasing their net
exposures, as any increase that took place in
February was generally taken in at the start of March, FRM says. But gross exposures were tactically increased. "The notable
exception was in Asia where managers decreased
gross exposures while navigating the sharp sector
reversal in the region from cyclicals into defensives.
Rhetoric from managers in the region suggests that
there is now broader acceptance of a slowdown in
China than there had been in previous months".
Systematic Trading managers had the worst time in M......................
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