Hedge Funds Recovering from Japanese Crisis

March 27, 2011 James Heinsman Hedge Fund News

The crisis in Japan has caused a major slump in the hedge fund industry, but the market seems to be on the verge of salvaging what had the potential to be one of the worst months since 2008.

Nikkei, a Japanese firm, still has a 225 index which is 10% lower following the earthquake that took place earlier this month, but the equity benchmark has leapt more than 10% since hitting an all-time low after the disaster.

As for U.S. funds, the Standard & Poor’s 500 index has recovered and is now recording a 1.6% increase since the day before the quake.

Wolver Hills and the Crisis

“As the market continues to stabilize it seems we have a good chance to salvage what once looked like a disaster of a month,” said Ed Rogers of Wolver Hill Asset Management.

Wolver Hills is a firm that invests largely in Japanese hedge funds. The company’s Japan Offshore Fund dropped 5.2% last week.

“We have been communicating with all of our managers constantly since last week,” Rogers said. “Almost every one of them has improved on their performance for the month since the very difficult trading sessions of Monday and Tuesday, when the Japanese indices were plummeting on the back of the worsening situation at the nuclear reactor.” He added that “We have almost two more weeks to improve on our returns for the month.”

Earthquake, Hedge Fund Industry, Hedge Funds, Japan, Nikkei,

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