Hedge Funds Return 3.3% In Q1

Apr 16 2007 | 11:31am ET

Hedge funds continued to perform well in 2007, driven by a strong March from emerging markets, long/short equity and equity market-neutral funds, the Credit Suisse Index Co. said.

The Credit Suisse/Tremont Hedge Fund Index rose 1.24% in March to close out the first quarter on a high note by topping the Standard & Poor’s 500, which rose 1.12% on the month. In the first three months of the year, the index is up 3.34%, while the S&P500 is up just 0.64%.

“Despite getting off to a rocky start, global equity markets managed to recoup losses in the beginning of March and ended the month on a positive note,” Credit Suisse Index Co. President Oliver Schupp said. “Overall, this market environment has led to the estimation that eight of the 10 hedge fund sectors will end March on a positive note.”

The best-performing sectors in March were emerging markets, long/short equity and equity market-neutral, at 1.96% (3.2% year-to-date), 1.87% (3.77% YTD) and 1.65% (2.75% YTD). Event-driven funds tracked by CSI were the strongest performers for Q1, up 4.25% year-to-date after a return of 1.27% in March. A pair of event-driven subindices, event-driven multi-strategy and distressed, had especially good first quarters, at 5.6% year-to-date (1.26% in March) and 4.25% year-to-date (1.27% in March), respectively.

The two losers in March were managed futures and dedicated short-bias, the former continuing its wretched 2007 with a 2.54% decline on the month. Managed futures funds are now down 4.7% on the year, the only sector in the red in 2007. Dedicated short bias funds lost 0.62% in March (up 1.64% YTD).

The managed futures bloodbath is even more evident among investable funds, where the strategy dropped 3.12% in March and 5.8% for the first quarter. On the whole, investable funds were up but trailed the S&P500. The Credit Suisse/Tremont Investable Hedge Fund Index rose 0.99% in March (2.33% YTD).


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.