Unrest in the Middle East and Japan’s nuclear crisis affected all financial markets in March and hedge funds were no exception as Hedge Fund Research’s HFRI Weighted Composite Index slipped 0.17% for the month.
Gains by event-driven, relative value arbitrage and equity strategies were offset by macro losses, says HFR.
The Nikkei 225 declined over 8% in March and Japan-focused hedge funds took a hit, reporting an average decline of 0.72% for the month.
Emerging markets gained 1.15% for the month, thanks to positive results from Asia ex-Japan, Latin America, and multiple emerging markets which were only partially offset by losses in Russia/Eastern Europe. Macro strategies were the big losers in March, shedding 1.31%.
Event-driven strategies recorded a seventh straight month of gains, adding 0.61% in March, as did equity hedge, up 0.31%. Relative value strategies also recorded a positive month, adding 0.49%.
The HFRI fund of funds index shed 0.13%, echoing the performance of the HFRI Weighted Composite Index.