Hedge Funds Up 0.23% In Feb.

Mar 11 2013 | 10:51am ET

Hedge funds have posted gains in the first two months of the new year, according to one prominent industry index.

The Hennessee Hedge Fund Index added 0.23% last month and is up 3.01% on the year. Both figures badly lag the broader markets, with the Standard & Poor's 500 Index adding 1.11% on the month and 6.2% on the year. But that underperformance could actually be a boon to hedge funds, Hennessee Group's Charles Gradante said.

"With equity markets near all-time highs, we are seeing more allocations into hedge funds. Many individuals feel that the equity and credit market upside is somewhat limited at this point and there are several risks that could cause markets to fall."

While the average hedge fund gained ground in February, the month was a mixed bag for the industry. While arbitrage and event-driven funds returned an average 0.46% (2.07% year-to-date) for the month, individual strategies ranged from a 1.07% jump for distressed funds (2.29% YTD) to a 0.6% return for merger arbitrage funds (1.24% YTD) and a 0.18% drop for convertible arbitrage funds (up 1.16% YTD).

Other winners included long/short equity funds, up 0.38% in February (3.43% YTD). Other losers included macro funds, which lost an average 1.63% (up 1.95% YTD), and emerging markets funds, which lost 0.41% (up 2.51% YTD).


In Depth

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

Common Risk Parity Misperceptions

Jul 16 2014 | 11:02am ET

Over the past few years, risk parity has become a component of most investors’...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note