Sat, Apr 19, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge funds conclude strong first quarter with mixed strategy performance in March

Tuesday, April 10, 2012
Opalesque Industry Update - Hedge fund performance was essentially unchanged in March, with the HFRI Fund Weighted Composite Index posting a narrow loss of -0.01 percent (1 bp) for the month, according to data released today by HFR (Hedge Fund Research, Inc.), the global leader in the indexation and analysis of the hedge fund industry. The HFRI Fund Weighted Composite posted a gain of +4.94 percent for 1Q12, the best first quarter since 2006.

Hedge fund gains were broad-based across strategy areas for both March and 1Q. Relative Value Arbitrage posted the strongest strategy area of performance in March, with the HFRI Relative Value Index gaining +0.60 percent for the month and +4.3 percent for 1Q12; fixed income-based relative value has posted recent gains as strong corporate credit markets and effective hedging has offset the impact of rising US yields. For the full quarter, Equity Hedge posted the strongest gains across strategies, with the HFRI Equity Hedge Index gaining +7.3 percent, the best first quarter performance total for Equity Hedge since 2000; Equity Hedge gained +0.3 percent in March, completing the 3rd consecutive month of gains.

Event Driven funds also benefitted from strong equity and credit markets in 1Q, with the HFRI Event Driven Index gaining +4.5 percent for 1Q, concluding the quarter with a gain of +0.2 percent in March; similar to Equity Hedge and Relative Value strategies, Event Driven funds were positive in all three months of 1Q12. Diverging from other strategies, Macro funds posted a decline to end 1Q, with the HFRI Macro Index declining -0.92 percent in March; despite this, Macro posted a gain of +1.2 percent for 1Q12, the weakest area of strategy performance. Macro performance was undermined by mixed performance across commodity exposure and quantitative, systematic managers; the HFRI Macro: Systematic Diversified Index declined -1.96 percent for March and -0.68 for 1Q.

Fund of Hedge Funds posted a gain of +3.4 percent for the 1Q12, adding +0.06 percent in March, while the HFRI Emerging Markets Index gained +7.35 percent for 1Q12, despite a decline of -1.5 percent in March.

"Hedge fund gains from early 2012 were virtually unchanged in March, with overall 1Q performance the best in six years," stated Kenneth J. Heinz, President of HFR. "While many global equity markets rallied in early 1Q12, volatility has returned to equities and other asset classes in recent weeks, indicating that although the set of risks has shifted in 2012, navigating the nascent global growth environment requires tactical flexibility and positioning for a broad continuum of macroeconomic and fundamental financial market scenarios."... Full performance table: Source
km

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  2. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  3. Opalesque Exclusive: Hedge fund replicators evolve[more]

    Bailey McCann, Opalesque New York: Hedge fund replicators as a group of products tend to get a bad rap from hedge fund managers who suggest that the best a replicator can offer is dynamic beta capture. A

  4. Opalesque Exclusive: Pensions, endowments, family offices reconsider life settlement investments[more]

    Bailey McCann, Opalesque New York: Hedge funds were once the largest investors in the life settlement industry, now the industry is seeing more interest from pensions, endowments and family offices directly. Life settlements have always been considered a niche part of the investing landscape, an

  5. SEC allows investment funds to use social media[more]

    Bailey McCann, Opalesque New York: The Securities and Exchange Commission (SEC) has released new guidance letting investment funds and advisors use social media to promote client reviews. The guidance seeks to assist investment managers in developing compliance policies and procedures reasonably