From Eurekahedge
Hedge funds posted positive returns in March amid mixed returns in global markets. The Eurekahedge Hedge Fund Index was up 0.71% during the month, while the MSCI World Index gained 1.76% in March.
Key highlights for March 2013:
- Early reports indicate positive asset flows to hedge funds in March; 1Q 2013 witnessed positive asset flows of US$20 billion
- Japanese hedge funds witnessed the strongest quarter on record, up 10.78% in 1Q 2013
- Launch activity picks up in 2013 with nearly 200 funds launched so far in the year
- Asia ex-Japan and European hedge funds outperformed underlying markets by 2.3% and 0.41% respectively
- Distressed debt and event driven were the best performing strategies in 1Q 2013, up more than 5% each year-to-date
- The asset-weighted Mizuho-Eurekahedge Asia ex-Japan Index grew 6.35% in 1Q 2013
Strategy Indices
All strategic mandates finished the month with positive returns, with event driven and distressed debt managers posting the strongest gains. Increasing corporate action including IPO volume and acquisition activity in the first quarter has been favourable for event driven managers. The Eurekahedge Event Driven Hedge Fund Index grew 2.90% in March, bringing its 1Q 2013 return to a strong 5.10%. Despite increasing risk aversion in Europe, distressed debt funds continued their strong run for the year with gains of 1.72% in March. Managers were able to post gains from a rebounding housing market in the US as well as corporate issuances. The BofA Merrill Lynch High Yield Index4 was up 1.03% during the month.
Among other strategies, long/short equity managers continued to deliver profits for the 10th consecutive month with gains of 1.01% in March. The mid-month volatility and divergent trends in global indices were helpful for relative value managers who posted returns of 1.04%. CTA/managed futures funds also posted positive returns of 0.45% with some managers reporting gains from the energy sector.
|
Strategy Indices |
March |
2013 |
2012 |
|
Eurekahedge Arbitrage |
0.55 |
2.11 |
7.03 |
|
Eurekahedge CTA/Managed |
0.45 |
0.93 |
1.01 |
|
Eurekahedge Distressed Debt Hedge Fund Index |
1.72 |
5.14 |
14.08 |
|
Eurekahedge Event Driven Hedge Fund Index |
2.90 |
5.10 |
9.45 |
|
Eurekahedge Fixed Income Hedge Fund Index |
0.37 |
2.04 |
10.90 |
|
Eurekahedge Long/Short Equities Hedge Fund Index |
1.01 |
4.75 |
7.82 |
|
Eurekahedge Macro Hedge Fund Index |
0.52 |
1.75 |
2.29 |
|
Eurekahedge Multi-Strategy Hedge Fund Index |
0.04 |
2.17 |
7.77 |
|
Eurekahedge Relative Value Hedge Fund Index |
1.04 |
3.28 |
10.82 |
|
Mizuho-Eurekahedge Indices |
March |
2013 |
2012 |
|
Mizuho-Eurekahedge Index – USD |
0.34 |
1.90 |
5.93 |
|
Mizuho-Eurekahedge TOP 100 Index – USD |
0.47 |
1.78 |
6.46 |
|
Mizuho-Eurekahedge TOP 300 Index – USD |
0.41 |
1.92 |
5.99 |
Eurekahedge indices are available for download from www.eurekahedge.com/