Stockholm (HedgeFonder.nu) – Following 2011, in which global hedgefunds retreated by -5,26% measured by HFRI in 2012 hedge funds are seeing the biggest performance gain to a start of the year since 2000. The advanced is broad based, with strategies that underperformed last year contributing strongly to the advance.
The gain of HFRI Fund Weighted Composite Index by 2.14 per cent in February, sees last years decline nearly recovered. Equity Hedge funds have had the most significant contribution to HFRI performance in 2012, with the HFRI Equity Hedge Index gaining 6.9 per cent through February . Gains have been broad-based across Equity Hedge sub-strategies, including Fundamental Growth, Value and Energy, with the only Short Bias funds detracting from gains.
Positive performance in 2012 has been broad-based across all main strategies, with Event Driven, Relative Value Arbitrage and Macro also posting gains in early 2012. Equity, M&A and credit-sensitive strategies have posted strong gains, with the HFRI Event Driven Index gaining 1.9 per cent in February (+4.6 per cen
t YTD) with significant positive contributions from Activist and Special Situations hedge fund strategies. Similarly, fixed income-based Relative Value Arbitrage funds gained 1.7 per cent in February (+3.6 per cent YTD) as spread tightening and strong liquidity contributed to Arbitrage gains. Macro funds have also posted gains despite the volatile commodity and trend following environment. The HFRI Macro Index, which gained 1.2 per cent in February, has gained 2.4 per cent YTD despite declines across most commodity focused hedge funds. Systematic, trend following Macro funds gained 1.1 per cent in February and have gained 1.5 per cent for 2012.
Emerging Markets hedge funds have also posted strong gains, with the HFRI Emerging Markets (Total) Index gaining 4.3 per cent in February and 9.3 per cent through the first two months of 2012. While performance has been strong across all Emerging Markets regions, the strongest gains have been in funds investing in Russia and Eastern Europe, gaining 12.7 per cent through early 2012.
Picture: (c) shutterstock—argus