The HFRI Fund Weighted Composite Index was up 0.14% on the month as of February 13, according to Hedge Fund Research.
The biggest winners were multi-strategy funds, up 1.49% on the month (and 3.28% YTD); technology/healthcare funds, up 0.88% on the month (3.64% YTD); and fixed-income asset-backed funds, up 0.75% on the month (2.66% YTD).
Other strategies in the black as of February 13 included equity market neutral, up 0.73% (1.99% YTD); convertible arbitrage, up 0.66% (2.40% YTD); fixed-income corporate index, up 0.28% (1.88% YTD); yield alternatives, up 0.71% (5.52% YTD); distressed/restructuring, up 0.11% (2.51% YTD); and merger arbitrage, up 0.04% (0.26% YTD).
The only strategies generating red ink for the monitored period were quantitative directional, down 0.77% (but up 2.19% YTD); energy/basic materials, down 2.84% (and down 0.31% YTD); short bias down 0.27% (and down 3.42% YTD); and systematic diversified down 1.11% (and down 0.45% YTD).
In terms of regions, global emerging markets funds led, adding 0.62% on the month (3.44% YTD); followed by Asia Ex-Japan funds, up 0.31% (4.33% YTD); and Latin American funds, up 0.22% (2.97% YTD).
Russia Eastern Europe Funds, on the other hand, were down 1.28% on the month (but up 2.01% YTD).
Funds of funds gained 0.13% in February.
“A resurgence of investor risk appetite and optimism drove hedge fund performance gains across credit, equity and arbitrage strategies, and enabled over $100 billion in financing to be raised for M&A transactions,” said Kenneth J. Heinz, HFR president, in a statement. “With equity markets near all-time highs, investors are actively allocating to the hedge fund industry for a number of reasons, including expectations for an end to quantitative easing, historically tight credit markets, opportunities in macro currency strategies and the potential for destabilizing developments in Syria and Iran. Hedge fund investors are positioning to participate in continued equity market gains but also to insulate their portfolios from equity or credit market weakness, rising yields or macro-political uncertainty.”