Saturday, 29 August 2015
Last updated 13 hours ago
Mar 8 2011 | 12:44pm ET
Hedge funds posted gains in February but continued to dig themselves a big hole in their race to exceed the broader markets.
The average hedge fund rose an estimated 1.44% last month, the Dow Jones Credit Suisse Hedge Fund Index shows. In January, that benchmark added 0.69%, leaving it up 2.14% on the year.
Unfortunately for hedge funds, that means they aren't making the most of the market rally: The Standard & Poor's 500 Index rose 3.43% in February and is up 5.88% through the first two months of the year.
Convertible arbitrage funds enjoyed the strongest February, adding 3.29% (5.52% year-to-date). Managed futures funds rose 2.56% (1.72% YTD), event-driven multi-strategy funds 1.92% (3.69% YTD), long/short equity 1.73% (2% YTD), event-driven 1.59% (3.42% YTD), global macro 1.26% (0.48% YTD), multi-strategy 1.13% (3.13% YTD) and distressed 1.11% (3.03% YTD).
Risk arbitrage funds added 0.87% on the month (1.77% YTD), fixed-income arbitrage 0.85% (2.54% YTD) and equity market-neutral funds 0.49% (2.29% YTD).
Two strategies lost ground in February. Emerging markets funds shed 0.63% (down 1.01% YTD), while dedicated short-bias funds were mauled by the market bulls, dropping 3.84% (down 4.64% YTD).
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…