Hedge funds stay positive despite challenging market conditions,up 0.20% in March
Eurekahedge Islamic Fund Index 2.30 0.80 9.56
All regions outperformed their underlying market indices in a month thatstarted off with declines in global markets due to discouraging reportsabout the European debt situation, Chinese economic data and continuedpolitical tensions in the Middle East. The disastrous earthquake andtsunami in Japan on the 11th of March, and the subsequent crisis at theFukushima Daiichi nuclear power plant, then led to a sharp sell-off inmarkets around the world.Asia ex-Japan hedge funds delivered the best performance among themajor hedge fund regions, gaining 2.21% in March. The MSCI AC AsiaPacific Ex Japan Index climbed 3.66% as a number of underlying marketsposted significant gains. The BSE Sensex rose 9.1% on the back of strong foreign investment flows, while South Korea's Kospi and Thailand'sSET gained 8.63% and 6.03%, respectively. Chinese markets also posteda strong recovery near the month-end, with the Hang Seng returning0.81% and the Shanghai Composite gaining 0.79%. Among the otherregions, returns from North American hedge funds were flat for March,while Japanese managers delivered excellent downturn protection amidsharply falling markets. Japanese hedge funds lost 0.86% on average inMarch, while the Topix and the Nikkei 225 lost 8.61% and 8.18%,respectively.
Table 2: Regional Indices
2011Returns 2010Returns Eurekahedge North American HedgeFund Index0.00 2.84 13.69Eurekahedge European Hedge FundIndex0.39 1.78 9.17Eurekahedge Eastern Europe & RussiaHedge Fund Index1.29 6.29 16.68Eurekahedge Japan Hedge Fund
Index-0.862.50 8.34Eurekahedge Emerging MarketsHedge Fund Index2.03 1.12 10.65Eurekahedge Asia ex-Japan HedgeFund Index2.21-0.6310.71Eurekahedge Latin American HedgeFund Index1.57 1.81 9.63
Most strategies finished the month with slight gains, with relative valuemanagers providing the best return, up 1.00%, making it the 10thconsecutive month of positive returns. All strategies with exposure tofixed income assets posted gains in March as the bond prices ralliedfollowing the situation in Japan. Multi-strategy funds gained 0.84%during the month while CTA/managed futures funds were down 1.03%due to erratic movements in currencies and energy markets, as well as