HFR: Hedge Funds Down In February

Mar 7 2007 | 11:39am ET

Hedge fund returns dipped slightly last month after global stock markets were roiled in February’s closing days, according to figures from Hedge Fund Research.

The firm’s HFRX Global Hedge Fund Index declined 0.21% in February, cutting its year-to-date return to 1.29%. Its absolute return index was in the black for the month (up 0.37% in February, 1.65% YTD), but its market directional index took a tumble (down 1%, up 0.37% YTD). Still, hedge funds did less badly than the broader markets, as the Standard & Poor’s 500 fell by almost 2% in February, leaving it down 0.47% in 2007 to date.

Merger arbitrage remains the strategy to beat in 2007, as it added another 1.55% in February to hit 3.71% on the year. Distressed securities (up 1.04%, 2.48% YTD), equity market-neutral (up 0.86%, 3.34% YTD) and convertible arbitrage (up 0.82%, 1.67% YTD) also posted strong months. Event-driven (up 0.6%, 2.72% YTD) and relative-value arbitrage (up 0.5%, 2.15% YTD) were also in positive territory for the month.

Not so lucky was the HFRX Macro Index, which was hammered in February, falling by 3.43% to obliterate January’s gain, leaving it down 2.89% for the year. Equity hedge was also in the red, but only by -0.21% (it’s up 1.26% YTD).


In Depth

FINtech Focus: Fundbase Aims To Revolutionize Access To Hedge Funds

Jan 23 2015 | 11:03am ET

Global investment in financial technology—also known as fintech—is booming....

Lifestyle

Is Steven Cohen Going to Buy the Brooklyn Nets?

Jan 19 2015 | 6:49am ET

Rumors that Steve Cohen was interested in the Brooklyn Nets emerged after Scott...

Guest Contributor

Investors Benefit From Evolution Of Fund Of Hedge Funds Model

Jan 22 2015 | 12:27pm ET

The evolution of the fund of hedge funds model over the last few years represents...

 

Editor's Note