After a slow start to the year, hedge funds showed their strength inMarch, witnessing robust positive results across all regions andstrategies. The composite Eurekahedge Hedge Fund Index advanced2.54%
amid significant movements in most underlying asset classes,bringing the YTD figure to 2.16%. The MSCI World Index increased5.93% in March and was up 2.74% YTD.
Initial reports indicate positive net asset flows for March
and andUS$16 billion net inflows for February.
Distressed debt hedge funds climbed 7.35% YTD with 12 monthsof consecutive positive returns, gaining 49.08% over this period.
All regional and strategic indices reported positive returns bothfor March and for the year.
Index Mar 2010Est
2010 YTDReturns 2009Returns Eurekahedge Hedge Fund Index 2.54 2.16 19.60Eurekahedge Fund of Funds Index 1.55 1.27 9.80Eurekahedge Long-Only AbsoluteReturn Fund Index7.02 6.72 46.95Eurekahedge Islamic Fund Index 1.65 1.65 21.7
Hedge funds across all regions delivered robust returns for March withemerging markets funds leading the way. Managers allocating to EasternEurope and Russia did especially well, with the Eurekahedge EasternEurope & Russia Hedge Fund Index leaping to a strong 6.88%. Managersallocating to Russia posted strong returns from their exposure to theenergy sector as well as to Russian equities while a surge in EasternEuropean stocks also yielded high gains – the RTS Index was up 11.46%while MSCI EM Eastern Europe Index was up 10.28% in the month.Asia ex-Japan managers also enjoyed healthy returns in March, with theEurekahedge Asia ex-Japan Index posting 3.92%. Most of the gains weredelivered on the back of strong rallies in the underlying equity markets,which were buoyed by positive economic data and upbeat sentiment –the MSCI Asia ex-Japan Index was up 7.15% in the month.