The Hennessee Hedge Fund Index advanced +1.01 percent in March (+3.34 percent YTD), while the S&P 500 rose +1.00 percent (+0.19 percent YTD), the Dow Jones Industrial Average increased +0.70 percent (-0.88 percent YTD), and the NASDAQ Composite Index advanced +0.23 percent (+0.26 percent YTD).
Bonds lagged in March, as the Lehman Intermediate Government Corporate Bond Index advanced +0.17 percent (+1.59 percent YTD).
“The first quarter was a relatively successful quarter for most hedge funds, as the increase in volatility allowed them to outperform equities on a relative basis,” said E. Lee Hennessee, managing principal of Hennessee Group LLC. “Hennessee Group believes that a slowdown in the economy should be good for most hedge fund strategies.”
The Hennessee Long/Short Equity Index advanced +0.80 percent in March (+3.04 percent YTD). Equity markets rallied following an early month correction, although failed to set new highs previously set in February. With relatively low net exposures, most managers rebuilt equity portfolios as volatility declined toward month end.