Quantitative Investment Management's flagship hedge fund continued its run of strong performance in February, but the commodity specialist's long/short equity fund finally cooled off after a hot streak that saw it return more than 15% last year.
Charlottesville, Va.-based QIM's Quantitative Global Program returned 1.2% last month and is up 1.5% this year. The $4.9 billion fund's February performance was driven by "strong trading in stock index futures and U.S. interest rates," the firm said.
"The program participated on both sides of the market as volatility in the medium and long-term U.S. treasury futures helped to generate profits. Potential looming inflation and a strengthening U.S. economy drove treasury prices down in the first half of the month. Prices rose in conjunction with demand for safer assets during the month’s turbulent second half. Although currency trading was flat for the month, the euro was the program’s best performing market for the fourth consecutive month," the firm wrote in an investor letter obtained by FINalternatives.
Two funds based on the flagship, the $326 million 1x fund and $302 million 3x fund were also in the black in February, the former rising an estimated 1.27% (1.58% year-to-date) and the latter an estimated 3.83% (4.85% YTD).
QIM's nearly three-year-old stock fund, however, lost an estimated 1.63% in February. The $476 million fund is still up 4.48% on the year, having followed its 15.16% 2010 surge with a 6.17% jump in January.