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Hedge funds remain in positive territory in March according to Backstop BarclayHedge

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Hedge funds continued their winning ways in March with a third straight month of positive returns. March’s hedge fund return was 0.67 per cent, according to the Barclay Hedge Fund Index compiled by BarclayHedge, a division of Backstop Solutions.

By comparison, the S&P 500 Total Return Index rose 1.94 per cent in March. Year-to-date through the end of March hedge funds posted a 5.64 per cent return while the S&P was up 13.07 per cent.

“The Fed’s announcement that it would hold interest rates steady for the remainder of the year added fuel to the ongoing uptrends in stock and bond markets,” says Sol Waksman, president of BarclayHedge. “Asian emerging markets responded enthusiastically to signs of a thaw in a US-China trade war, while lower US interest rates added further momentum.”

Leading the way among hedge fund sectors in March were the Emerging Markets Asian Equities Index with a 3.73 per cent return and the Emerging Markets Asia Index which returned 3.49 per cent for the month. Other emerging markets indices also had a positive month, including the Emerging Markets Index posting a 1.83 per cent return and the Emerging Markets Global Fixed Income Index with a 1.80 per cent return.

Among other sectors in positive territory in March were the Balanced (Stocks & Bonds) Index which posted a 0.95 per cent return and the Healthcare & Biotechnology Index with a 0.83 per cent return for the month.

While the vast majority of sectors were in positive territory in March, there were some posting losses for the month, including some Latin American funds. With new economic data for several Latin American countries prompting downward revisions of Latin America growth estimates, the Emerging Markets Latin American Equities Index was down 3.32 per cent in March while the Emerging Markets Latin America Index was off 2.62 per cent.

For the year-to-date through March, top gainers included the Healthcare & Biotechnology Index with a 13.89 per cent return for the first three months, the Emerging Markets Asian Equities Index with a 9.64 per cent year-to-date return and the Emerging Markets Global Fixed Income Index which returned 9.69 per cent for the first quarter. Others with strong year-to-date returns were the Emerging Markets Asia Index which posted a 8.66 per cent return, the Emerging Markets Global Equities Index which returned 9.09 per cent year-to-date, the Equity Long Bias Index with an 8.68 per cent return for the first three months and the Technology Index which returned 8.66 per cent year-to-date.

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