The hedge fund industry got back to monthly gains in March, eking out a 0.39% return for the month, according to the Barclay Hedge Fund Index compiled by BarclayHedge, a division of Backstop Solutions.
The hedge fund industry got back to monthly gains in March, eking out a 0.39% return for the month, according to the Barclay Hedge Fund Index compiled by BarclayHedge, a division of Backstop Solutions.
By comparison, the S&P Total Return Index gained 3.71% in March.
For the year to date, the hedge fund industry was down -3.36% through March, losing slightly less ground than the S&P 500 Total Return Index, which was off -4.60% over the same period.
Hedge fund subsectors were evenly divided between gainers and losers in March, with two subsectors flat month-over-month. The Distressed Securities Index had the strongest month of all subsectors, returning 4.51%. Other strong performers included the Healthcare & Biotechnology Index up 3.02%; the Pacific Rim Equities Index notching 2.77%; the Global Macro Index advancing 2.14%; and the Option Strategies Index booking 1.85%.
Among the wounded in March, the majority of the suffering was borne by Emerging Markets. The Emerging Markets Asian Equities Index and the Emerging Markets Asia Index were on the vanguard of the retreat, losing -3.49% and -2.90% respectively. A second cluster of losses was led by the Emerging Markets Index down -1.95%. It was followed by the Emerging Markets Global Index – 1.86%; Emerging Markets Global Equities Index -1.79%; and the Technology Index -1.54%.
The hedge fund industry as a whole as well as a significant majority of its subsectors remained in the red on a year-to-date basis. Despite the relatively broad trend toward losses, a handful of strategies have proved their mettle throughout Q1 2022. These included the Distressed Securities Index which was up 4.27%; the Global Macro Index banking 3.86%; and the Emerging Markets Latin America Index which pocketed 3.69%.
Year-to-date losses have been headlined by managers in Eastern Europe as well as Technology-centric traders. The Emerging Markets Eastern Europe Index has shed -12.60% and the Emerging Markets Eastern Europe Equities Index is off -12.18%. The Technology Index has also struggled in 2022 and was down -12.45% at the end of the first quarter. Also struggling through Q1 were Emerging Markets across Asia. The Emerging Markets Asian Equities Index saw nearly a tenth of its value evaporate over this interval, showing a cumulative loss of -9.90%. The Emerging Markets Asia Index also suffered sharp losses totaling -8.57%.
