Hedge Funds Add 0.6% In March To End Best First Quarter Since '06

Apr 9 2012 | 11:17am ET

Hedge funds enjoyed their best first quarter in six years—but still badly lagged the broader markets, according to a major industry index.

The Hennessee Hedge Fund Index rose 0.6% last month, making it three-for-three in terms of positive monthly returns in 2012. The benchmark is up 4.6% in the first quarter.

Unfortunately for hedge funds, the Standard & Poor's 500 Index rose 12% over the same period.

"Hedge funds have performed well given their low net exposures," managing principal Lee Hennessee said. "However, managers did express some frustration on the short side of the portfolio. Many high-beta short positions rallied more than the overall market in the first quarter, detracting from performance."

Equity long/short strategies were some of the best in March, adding 1% on the month.


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note