A Challenging First Quarter for Hedge Funds

April 5, 2011 James Heinsman Hedge Fund News

The $2 trillion dollar hedge fund industry is still struggling to reduce losses that resulted from Japan’s earthquake and tsunami.

“Hedge funds had a challenging March,” said Mary Ann Bartels, an industry activity tracker at Bank of America Merrill Lynch. Hedge fund-indexes that she tracked had fallen 0.91% last month, while the Standard & Poor’s 500 index gained 0.08% during that time.

Numerous hedge funds suffered major losses as the stock markets fell, but many have been able to pick themselves back up, reducing the losses. Still, there are funds that have not been so successful.

Bartels explained that “for the month of March it appears only two strategies will post positive gains.”

These are equity market neutral and event-driven managers. The worst off were the long/short equity funds, and commodity trading advisors.

David Einhorn of Greenlight Capital said this was his most difficult first quarter since 2007. In March, Einhorn lost 2%, leaving him with a total loss of 3.4% in the first quarter.

David Einhorn, Greenlight Capital, Hedge Funds, Hedge Funds Industry, Mary Ann Bartels,

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