Key Takeaways
- • The Credit Suisse/Tremont Hedge Fund Index posted a final gain of 0.65 per cent in March, according to Credit Suisse, bringing year-to-date returns to 0.85 per cent.
- • Emerging markets funds led strategy performance with a 2.24 per cent return in March, helped by stronger commodities markets and government fiscal stimulus plans.
- • Fixed income arbitrage (+1.74 per cent), risk arbitrage (+1.65 per cent) and convertible arbitrage (+1.14 per cent) also gained, while dedicated short bias fell 5.47 per cent and managed futures declined 2.18 per cent.
- • Four funds stopped reporting to the index: Kinyan Capital, JB Diversified Fixed Income Hedge Fund, Peloton Multi-Strategy Master Fund and The Dejima Fund.
Summary
The Credit Suisse/Tremont Hedge Fund Index recorded a final performance gain of 0.65 per cent in March, according to the Credit Suisse Index, lifting year-to-date returns to 0.85 per cent. The modest gain came as hedge funds remained defensively positioned amid continued market volatility, a stance that prevented some managers from fully capitalizing on the equity rally seen in the month.
The report noted that while most equity indices were down for the year, hedge fund returns to date had been positive, with considerably less volatility. This divergence underlines the diversification argument that allocators have leaned on through the downturn.
Emerging markets funds were the standout strategy, returning 2.24 per cent in March as managers benefited from stronger commodities markets and government fiscal stimulus programs. Among other arbitrage strategies, fixed income arbitrage rose 1.74 per cent, risk arbitrage gained 1.65 per cent and convertible arbitrage advanced 1.14 per cent. By contrast, dedicated short bias fell 5.47 per cent and managed futures declined 2.18 per cent.
The index's performance is calculated monthly across its ten sub-strategies. Kinyan Capital, JB Diversified Fixed Income Hedge Fund, Peloton Multi-Strategy Master Fund and The Dejima Fund are no longer reporting to the index, a change that affects the constituent universe going forward.
The report noted that while most equity indices were down for the year, hedge fund returns to date had been positive, with considerably less volatility. This divergence underlines the diversification argument that allocators have leaned on through the downturn.
Emerging markets funds were the standout strategy, returning 2.24 per cent in March as managers benefited from stronger commodities markets and government fiscal stimulus programs. Among other arbitrage strategies, fixed income arbitrage rose 1.74 per cent, risk arbitrage gained 1.65 per cent and convertible arbitrage advanced 1.14 per cent. By contrast, dedicated short bias fell 5.47 per cent and managed futures declined 2.18 per cent.
The index's performance is calculated monthly across its ten sub-strategies. Kinyan Capital, JB Diversified Fixed Income Hedge Fund, Peloton Multi-Strategy Master Fund and The Dejima Fund are no longer reporting to the index, a change that affects the constituent universe going forward.
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