Hedge Funds Attract $3.25B In February

Mar 27 2012 | 8:48am ET

Investors poured about $3.25 billion into hedge funds in February, the first month of inflows since August 2011, bringing total assets under management in the industry to $1.75 trillion.

The Dow Jones Credit Suisse Hedge Fund Index was up 1.61% in February, with nine of the 10 strategies followed in the black

Convertible arbitrage and managed futures strategies saw the largest asset inflows on a percentage basis in February, at 0.97% and 0.64%, respectively, from January 2012.

Directional strategies, such as long/short equity, generated positive returns for the second month in a row. Managers noted that the market appeared to trade more on fundamentals as stock correlations declined and stock prices reacted in line with post earnings announcements;

Global macro managers and managed futures funds posted gains thanks to positive market sentiment driven by further global monetary easing and better-than-expected macroeconomic data.

Fixed-income arbitrage managers posted gains as managers have, in some instances, been able to benefit from the risk-on environment through model convergence trades as volatility compressed over the course of the month.

 


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The healthcare sector went on a tear beginning in 2011, thanks in large part to the passage of the Affordable Care Act and its impending implementat