The Barclay Index flash estimates for March 2005 show that 13 out of 18 hedge fund strategies lost money in March.
According to the index, which is prepared by the Barclay Group - a provider of managed futures and hedge funds data - Emerging Markets, which jumped 4.73 per cent in February, dropped 2.76 per cent.
Convertible Arbitrage was down 1.59 per cent, while overall, the Barclay/GHS Hedge Fund Index lost 0.70 per cent.
Sol Waksman, president of The Barclay Group, said: "In an environment filled with uncertainty regarding inflation, energy prices, and trade imbalances, the March returns for major stock indexes such as the S&P 500 and the Russell 2000 were down 2.15 per cent and 5.60 per cent respectively. Hedge funds, by comparison, certainly fared better.
"Year-to-date, hedge funds have gained 1.31 per cent while US stock market indexes across the board are in negative territory," he added.
Managed futures also slipped in March, with 4 of 7 strategies losing money. The Barclay CTA Index was down 0.30 per cent, while the Barclay BTOP 50 Index, representing the performance of the largest CTAs, gained 0.30 per cent.
During the first three months of 2005, the Barclay/GHS Hedge Fund Index gained 1.37 per cent. In managed futures, the Barclay CTA Index was down 3.25 per cent for the quarter, and the Barclay BTOP 50 Index fell 1.89 per cent.