Hedge funds lost 0.09 per cent in March, according to the Barclay Hedge Fund Index compiled by BarclayHedge. The index is up 1.39 per cent year to date.
“Global equity markets experienced their version of March Madness as fears of Russian expansionism, Fed tightening, and slowing growth in China spiked intra-month volatility,” says Sol Waksman, founder and president of BarclayHedge.
The Equity Short Bias Index fell 2.47 per cent in March, the Technology Index lost 2.34 per cent, Healthcare & Biotechnology gave up 1.29 per cent, Global Macro was down 0.92 per cent, and European Equities lost 0.90 per cent.
“US growth stocks stumbled at month-end as share prices of hedge fund favourites such as Google, Facebook, and Yahoo dropped sharply,” says Waksman.
On the positive side, the Distressed Securities Index was up 0.86 per cent in March, Convertible Arbitrage gained 0.79 per cent, and Fixed Income Arbitrage gained 0.50 per cent.
“In spite of higher interest rates and lower prices on US Treasuries, prices on high yield bonds rose and contributed to the narrowing of credit spreads, which typically provides a favourable backdrop for relative value fixed income trades,” says Waksman.
At the end of the first quarter, the Healthcare & Biotechnology Index is the strongest performer with a 9.63 per cent gain. Distressed Securities are up 4.20 per cent, the Event Driven Index has gained 3.03 per cent, and European Equities have returned 2.82 per cent.
After three months, Equity Short Bias is down 4.78 per cent, Pacific Rim Equities have lost 2.06 per cent, Global Macro has given up 1.70 per cent, and Emerging Markets are down 1.61 per cent.
The Barclay Fund of Funds Index lost 0.73 per cent in March, but remains up 0.62 per cent year to date.
