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Bailey McCann, Opalesque New York: Composite hedge fund performance equal weighted across funds was down in March, according to the latest performance data from Citi Prime Finance. Performance ranged from -0.39% to -0.17% with returns lower than the previous month which experienced +1.34 to +1.59% over the same period.
On a per strategy basis, top performers included Distressed at +0.63%; Fixed Income/Arbitrage +0.58%, and Emerging Markets at +0.29%. The lowest performing strategies included CTAs and Managed Futures -1.38%; Dedicated Short -1.24% and Equity Long/Short -0.50%.
Despite the performance drag, assets continue to flow into hedge funds. Overall industry assets rose in March realizing an increase of +$9.4bn for the month after experiencing an increase of +$79.2bn in February. March gains were attributed solely from investor flows totaling $16.2bn. Total industry gains in March trail the mean monthly gain in assets throughout 2013 which averaged $21.2bn.
The positive investor inflows for March mark the third consecutive month for asset gains. Year to date investor flows now stand at $53bn.
On a global basis, group leverage rose to 2.13x in March up only slightly from February which reported 2.12x. On a strategy level, Equity Market Neutral was the greatest user of leverage at 4.1x. Global Macro and Convertible Arbitrage followed behind at 3.73x and 3.33x respectively.
Overall, report data shows that markets have opted to discount the growing...................... To view our full article Click here
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