Hedge Funds Post Best Q1 Since 2006

Apr 10 2012 | 8:44am ET

Equity and event driven funds led the way as hedge funds posted their strongest first quarter since 2006, according to Hedge Fund Research.

The HFRI Fund Weighted Composite Index was up 4.94% in Q1 2012, despite a slight loss—0.01%—in March.

For the full quarter, equity hedge funds posted the strongest gains, adding 7.3%, their best first quarter performance since 2000. For the month of March alone, equity hedge strategies were up 0.3%.

Relative value arbitrage funds were up 0.60% for the month of March (the best results of any strategy) for a first quarter gain of 4.3%.

Event driven funds gained 4.5% in the first quarter and 0.2% for March.

On the flip side of the coin, Macro funds declined by 0.92% in March, although they were up 1.2% for the quarter. Within the macro category, systematic diversified funds were down 1.96% for March and 0.68% for the first quarter.

Funds of hedge funds gained 3.4% in the first quarter, having added 0.06% in March. Emerging markets added 7.35% in the first quarter despite a decline of 1.5% in March.

"Hedge fund gains from early 2012 were virtually unchanged in March, with overall Q1 performance the best in six   years," said Kenneth J. Heinz, president of HFR, in a statement. "While many global equity   markets rallied in early Q112, volatility has returned to equities and other  asset classes in recent weeks, indicating that although the set of risks has  shifted in 2012, navigating the nascent global growth environment requires   tactical flexibility and positioning for a broad continuum of macroeconomic and   fundamental financial market scenarios."


In Depth

High Time For A Cannabis Hedge Fund?

Sep 30 2014 | 7:07am ET

Launching a hedge fund is always a gamble, but Leslie Bocskor's decision to launch...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.