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

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

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.