Hedge funds up 0.52% in February
After being marginally down in January, hedge funds returned to positiveterritory in February 2010. The composite Eurekahedge Hedge FundIndex gained 0.52% during the month as the underlying global marketsposted a recovery from a disappointing January. The MSCI World Indexwas up 1.23% in February, bringing its YTD figure to-3.01%.
Hedge fund start-up activity gears up with nearly 90 launchesglobally in 1Q2010.
Arbitrage hedge funds delivered 15 consecutive months of positive returns, gaining 26.23% since November 2008.
Index Feb 2010Est
2010 YTDReturns 2009Returns Eurekahedge Hedge Fund Index 0.52-0.2619.52Eurekahedge Fund of Funds Index 0.20-0.209.76Eurekahedge Long-Only AbsoluteReturn Fund Index0.55-0.4847.00Eurekahedge Islamic Fund Index 0.83-0.3621.68
Hedge fund returns across most regions were marginally positive forFebruary; however, early reports showed that North American managers,who make up 65% of the hedge fund universe, posted impressive gainsof 1.41%. Regional managers capitalised on the marked improvements inmarket sentiment on the back of some strong earnings reports, positivemovements in the US dollar and commodities as well as improvedmanufacturing data and the Fed’s decision to maintain low interest rates.Latin American funds were also positive with a 0.48% returns in Februarywhile Asia ex-Japan and Japan funds returned nominally positiveperformances. Continued problems in the eurozone led to negativeresults by the region’s managers, who were down 0.66% in February asthe euro weakened amid speculation of Greece’s sovereign debt default.Index Feb 2010Est
2010 YTDReturns 2009Returns Eurekahedge North American Hedge 1.41 0.95 23.38