Both gross and net monthly returns for the Palomar Structured Credit Hedge Fund Index showed further negative performance in March, albeit significantly reduced from their decline in Febru
Both gross and net monthly returns for the Palomar Structured Credit Hedge Fund Index showed further negative performance in March, albeit significantly reduced from their decline in February. However, funds using a correlation trading strategy managed to buck the trend.
The March figures for the index show a gross decline of 1.58 per cent and a net loss of 1.70 per cent, with just seven out of 23 funds reporting positive results. Two sub-strategies, long investment grade leveraged and relative value, intra-credit, reported losses of around 7 per cent, but correlation trading was up by the same proportion. The dispersion and range of returns decreased by comparison with February.
The Palomar Structured Credit Hedge Fund Index seeks to represent the risk and return of investible hedge fund investments in the structured credit area, measuring the monthly performance of the universe of open, investible structured credit hedge funds, and is calculated in gross and net asset value form.
The index is compiled and run by Palomar Capital Advisors, a financial advisory firm specialising in structuring, managing and placing alternative investment products, specifically credit-related securities. An independent firm based in Zurich, it is owned and controlled by its investment professionals.
