More Lion Than Lamb: Hedge Funds Soar In March

Apr 9 2010 | 9:21am ET

Hedge funds erased their early 2010 losses with a strong March, according to Hedge Fund Research.

The HFRI Fund Weighted Composite Index rose 2.7% last month, bring its year-to-date return to 2.56%. The gains were broad-based, with only one strategy—short bias—suffering a down month amidst the month’s stock market rally. And what a down month: Short bias hedge funds plummeted 6.6% in March and are down 7.1% on the year—the only hedge fund strategy tracked by the HFRI indices in the red through the first quarter.

The month’s returns were led by quantitative directional hedge funds, which rose 3.78% in March (3.05% year-to-date). Equity hedge funds generally did well, rising 3.53% (3.1% YTD), with the exceptions of short bias funds and equity market neutral funds, which returned only 0.69% (0.96% YTD). Technology and healthcare funds added 3.33% (2.66% YTD) and energy and basic materials funds rose 3.07% (1.78% YTD).

Event-driven funds returned an average of 2.96% (4.36% YTD), with distressed and restructuring funds jumping 3.04% (5.17% YTD, the best return for the first quarter). Macro funds returned 2.2% (0.44% YTD) and relative value funds added an average of 1.1% (3.24% YTD).

Emerging markets funds also posted extremely strong returns last month, adding 5.24% on average (3.88% YTD). Russia and Eastern Europe funds skyrocketed 10.23% (10.39% YTD), Asia ex-Japan funds added 4.37% (1.72% YTD) and global funds returned 3.63% (3.48% YTD).

Funds of hedge funds returned an average of 1.69% on the month (1.45% YTD).


In Depth

The Benefits Of Private Debt Investing

May 7 2015 | 10:43am ET

Jeffrey Haas is chief operating officer of Old Hill Partners Inc., an SEC-registered...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

How To Generate 6% Yield In A Volatile World

May 22 2015 | 6:41am ET

Private credit comes in many different flavors, all with the common themes of over...

 

Editor's Note