Hedge Funds Down Under Rise 2.1% In March

Apr 14 2009 | 10:01am ET

Like their counterparts elsewhere in the world, Australian hedge funds posted gains last month. In fact, funds Down Under outperformed compared to global hedge fund averages.

The Australian Fund Monitors Index rose 2.1% in March, according to early returns from AFM. Like the rest of the hedge fund industry, the Australians failed to match last month’s equities rally, which sent Australian stocks up 7.1%. But they did a better job than most; the average hedge fund rose about 1.5% last month, according to most indices.

“It’s inevitable that in a really strong up market, you lose some of your upside because your short positions cost you money,” Chris Gosselin, CEO of AFM, told Bloomberg News.

Also much like the rest of the hedge fund industry, redemptions from Aussie hedge funds are waning, Gosselin said.

Equity 130/30 funds were the best performers in Australia last month, with a 6.7% return. Equity long/short funds also did well—unsurprisingly, given the soaring stock markets in March—with a 4% return. Even the worst-performing strategy, global macro, did not do all that badly, falling just 1% on the month.

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