The hedge fund industry had a strong start to 2012, with various hedge fund indexes showing positive returns and flows across the board.
Eurekahedge says it was the strongest start to a year in 12 years for hedge funds, with all regional and strategic mandates reporting net gains the last two months. Meanwhile, EDHEC-Risk shows almost all strategies in the black, with most posting returns of 1.4% to 7.4% year to date. Only short selling was in the red, losing 5.59% in February, exhibiting negative alpha relative to the stock market, EDHEC-Risk says.
The overall Eurekahedge Hedge Fund Index gained 2.05% in February, although that trailed the equities markets, where the MSCI World Index gained 4.55%. Optimism that the European debt situation is improving and a strengthening global economy contributed to the gains, Eurekahedge says.
Emerging markets were hot again in February, posting the largest gains of all strategies, according to Eurekahedge data. Asia ex-Japan in particular fared well, delivering a 4.32% return in February and 8.79% so far this year. EDHEC-Risk concurs, showing a 3.33% return in February for emerging markets, higher than any other strategy.
Meanwhile, GlobeOp said last week that March inflows into hedge funds totaled 2.10%. The GlobeOp Capital Movement Index has increased 14 points to 145 points over the past 12 months.
(CG)