Credit Suisse/Tremont Hedge Fund Index releases a new research piece, Q1 2009 Update: Hedge Funds Gain Traction in First Quarter. The report discusses first quarter performance, provides updated industry statistics and explores developing trends in the hedge fund space.
Despite continued market volatility, hedge fund returns appear to have stabilized in the first quarter as funds posted gains of 0.9% between January and March-this is compared to a loss of 13% in the MSCI World Index and a 3% decline in the Barclays Global Aggregate Bond Index. A new research paper, Q1 2009 Update: Hedge Funds Gain Traction in First Quarter, reveals:
-Despite positive performance, overall assets under management for the industry declined an estimated USD163 billion between January and March. Total industry assets are now estimated at USD1.3 trillion (as of 31 March),
-As of 31 March, an estimated 17% of funds were classified as impaired, meaning they have either imposed gate provisions, suspended redemptions or sidepocketed assets,
-Global Macro, Managed Futures and Convertible Arbitrage appear to be gaining momentum and investor interest in the current environment,
-Further consolidation of the hedge fund industry seems likely, potentially leaving surviving funds better positioned to capitalize on alpha generating opportunities,
-Expect to see investors increase their focus on liquidity, transparency and cost efficiency,
-Expect core/satellite approach to gain in popularity.
L.D.