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Laxman Pai, Opalesque Asia:

Hedge funds fared well despite the volatility, with single-manager funds, funds of CTAs, alternative mutual funds, UCITS, and funds of hedge funds all in positive territory, quarter on quarter, said Preqin Quarterly Updates Q1 2023. CTAs were the only exception not to make up ground in Q1.

Positive signs were in evidence during the first quarter of 2023, including bond markets rebounding and equity indices improving on the previous quarter in many regions. But banking system disruption following rising interest rates and inflation added to the overall instability.

"In the first quarter of 2023 equity indices were higher than in the previous quarter across nearly every economic region, while bond markets rebounded after a difficult 2022. That is not to say all was perfect," said the report.

Central banks continued to raise interest rates and hinted at further hikes aimed at quelling persistently high inflation. However, the US Bureau of Labor Statistics reported that the Consumer Price Index was up by 5% in the 12 months to March, compared with 6.5% in December 2022, while inflation in the eurozone fell to 6.9% in March, from 9.2% at the end of 2022.

"If these trends persist we should see rate increases slow as long as central banks consider their actions as having had the required effect," the report noted.

Charles McGrath, AVP Research Insights, at Preqin said: "Hedge funds continued to hit their stride in Q1 2023 across mult......................

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