Opalesque Industry Update –
After a slow start to the year, hedge funds showed their strength in March, witnessing robust positive results across all regions and strategies. The composite Eurekahedge Hedge Fund Index advanced 2.54%1 amid significant movements in most underlying asset classes, bringing the YTD figure to 2.16%. The MSCI World Index increased 5.93% in March and was up 2.74% YTD. |
• Initial reports indicate positive net asset flows for March2 and and US$16 billion net inflows for February.
Hedge funds across all regions delivered robust returns for March with emerging markets funds leading the way. Managers allocating to Eastern Europe and Russia did especially well, with the Eurekahedge Eastern Europe & Russia Hedge Fund Index leaping to a strong 6.88%. Managers allocating to Russia posted strong returns from their exposure to the energy sector as well as to Russian equities while a surge in Eastern European stocks also yielded high gains – the RTS Index was up 11.46% while MSCI EM Eastern Europe Index was up 10.28% in the month.
Asia ex-Japan managers also enjoyed healthy returns in March, with the Eurekahedge Asia ex-Japan Index posting 3.92%. Most of the gains were delivered on the back of strong rallies in the underlying equity markets, which were buoyed by positive economic data and upbeat sentiment – the MSCI Asia ex-Japan Index was up 7.15% in the month.
All strategic indices were positive for March, with riskier assets delivering the best returns. Net long exposures to equity markets were profitable, with the S&P 500 returning 5.9% while the FTSE and DAX were up 6.1% and 93.9%, respectively. The Eurekahedge Long/Short Equities Hedge Fund Index gained 3.04% in the month.
Distressed debt managers were the best performers in March as they continued their winning streak to 12 straight months by gaining 49.08% on average over this time period. The Eurekahedge Distressed Debt Hedge Fund Index was up 4.27% in March, bringing the YTD figure to 7.35%. Managers employing this strategy have delivered exceptional performance recently, profiting from the continuing rally in the sector – the Merrill Lynch High Yield Index was up 4.99% YTD.
Fulll report with performance tables: Source.
For the full suite of Eurekahedge indices: Source.