All six hedge fund strategies calculated by Dow Jones Hedge Fund Indexes posted net-of-fees losses in March 2008.
All of the strategies ended the first quarter in negative territory.
Merger Arbitrage was down 92 basis points in March but ended the quarter as the leading strategy with a YTD performance of -0.40%. Posting a return of -0.06%, equity market neutral is not far behind the leading strategy on a YTD basis with a quarterly return of -0.52%. Event driven was down 0.47% bringing its quarterly performance to -1.47%. Convertible arbitrage declined 4.55% for the month of March, while distressed securities fell 0.63%, bringing each strategy to a first-quarter decline of more than 4%. Equity long/short ended the month of March down 1.60% and placing it as the laggard for the quarter with a YTD performance of -6.23%.
-Net of Fees Performance 2008
March
YTD-Convertible Arbitrage
-4.55% -4.73%
-Distressed Securities
-0.63% -4.74%
-Equity Long/Short
-1.60% -6.23%
-Equity Market Neutral
-0.06% -0.52%
-Event Driven
-0.47% -1.47%-Merger Arbitrage
-0.92% -0.40%
-Dow Jones Wilshire 5000
-0.69% -9.52%
-Dow Jones Wilshire Global Index -1.60% -9.33%
-Dow Jones Corporate Bond Index -0.67% 0.88%
On a float-adjusted basis, the Dow Jones Wilshire 5000, the only broad measure of the domestic equity market, returned -0.69% in March, lowering its YTD performance to -9.52%.
The fixed income asset class, as measured by the Dow Jones Corporate Bond Index, lost 0.67% this month, pulling its cumulative gain down to 0.88% for the year.
Finally, the Dow Jones Wilshire Global Index, the broadest measure of global equity markets, was also down -1.60% for the month increasing its YTD decline to -9.33% for 2008.