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

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

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

Looking for a way to keep warm during the cold weather or rather alleviate your cold while under the weather?