MarketWatch reports: Hedge funds gained roughly 1 percent on average in March, leaving the private investment partnerships ahead of most global equity market benchmarks so far this year.
However, futures hedge funds and managers focused on the financial-services sector struggled amid volatility in the market and a shake-out in the subprime mortgage business.
An index of managers compiled by Hedge Fund Research returned 0.99 percent last month, leaving it up 2.88 percent so far in 2007. Another index run by Greenwich Alternative Investments was up 0.98 percent in March and 2.82 percent so far this year. Hedge funds tracked by The Barclay Group gained more than 1 percent last month.
The Standard & Poor’s 500 index climbed 1.12 percent in March, while the MSCI World Equity index advanced 1.59 percent. The S&P gained 0.64 percent during the first quarter and the MSCI World Equity benchmark advanced 2.06 percent.
Energy hedge funds were the biggest gainers in March, returning 3.99 percent on average, while emerging markets managers were up 1.98 percent, HFR added.
Futures hedge funds lost money last month. These types of funds often perform best when there are clear market trends to latch on to. But in March stock markets were volatile and the interest rate trend was clouded, said Sol Waksman, president of The Barclay Group.