Hedge funds up slightly in March

10 April 2007

Hedge funds posted small gains in March helping them to a slight improvement in first-quarter returns, according to collated statistics for the time period.

Figures from the Henessee Group and Hedge Fund Research (HFR) showed gains of 1.1 per cent and 0.9 per cent in March respectively, as private investment partnerships continued to show a return ahead of worldwide equity benchmarks.

Meanwhile, figures for March from Greenwich Alternative Investments and The Standard & Poor 500 Index showed respective gains of 0.98 per cent and one per cent.

Funds that were found to be performing particularly well were those with a portfolio with an energy trading bias, which recorded gains of almost four per cent for the quarter.

However, returns for funds that specialize in financial services continued to decline and posted 4.34 per cent losses for the first-quarter according to the HFR, while short-biased funds fell 0.44 per cent.

Improved performances for hedge funds in March came after stock market wobbles in the early part of the year, which declined at its sharpest rate for four years in February, and the crisis in the US subprime mortgage market.

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