Eurekahedge: Hedge Funds Gain 1.15% in March

Apr 13 2016 | 10:37pm ET

Hedge funds recouped some of the losses suffered at the start of the year during March, according to new research from Eurekahedge. 

Hedge funds gained 1.15% in March as underlying markets represented by the MSCI World Index gained 5.47% in a positive month for global markets. The Fed's decision to roll back further on its scheduled interest rate hikes for 2016, coupled with rising oil prices and monetary easing in China provided much need relief for the markets, Eurekahedge noted in the report. 

Below are the key highlights for the month:

  • Hedge funds were up 1.15% during the month, down 0.52% year-to-date. In March, emerging market and North American mandates contributed to strong gains for managers - up 4.79% and 1.96% respectively. 
  • For the first quarter, hedge funds are down 0.52%, outperforming the MSCI World Index’s decline of 1.97% 
  • Event driven, short-volatility and arbitrage strategies topped the table in March, returning 3.34%, 2.98% and 2.28% respectively.
  • Among developed market mandates, North American managers ended Q1 down 0.15% while European and Japanese managers posted losses of 2.56% and 2.39% respectively. 
  • Long/short equities, CTA/managed futures and multi-strategy hedge fund strategies accounted for 65% of investor searches across the Eurekahedge Global Hedge Fund Database, generating the most investor interest in a year. The strategies are in the lead among hedge fund strategies, recording almost $100 billion in investor flows over this period.
  • The Eurekahedge Asia ex-Japan Hedge Funds Index was up 4.21% during the month, with Greater China hedge funds, a heavyweight of the index, posting gains of 4.69% in March.
  • Improving risk appetite supported the high yield markets, with distressed debt hedge funds reversing their 4-month losing streak to bounce back with gains of 1.94% during the month. As of March 2016, distressed debt strategies are down 1.01% while losses in 2015 stood at 4.40%.

Eurkahedge’s update was based 44.10% of funds which have reported March 2016 returns as at 12 April 2016.

Eurekahedge tracks asset flows, hedge fund performance and regional key trends across the hedge fund universe. The firm's database tracks more than 130 data points on more than 24,000 alternative fundss

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