February Fine for Hedge Funds

March 11, 2013 James Heinsman Hedge Fund News

Boosted by a surging dollar and close to record level US equity indexes, hedge funds showed gains in February, further cheering investors and economists. The performance is especially remarkable as it comes in the face of European banking worries and the sovereign debt crisis in the wake of the Italian elections.

The Hedge Fund Research, Inc, Fund Weighted Composite Index gained 0.14 percent during February, the eight gain in the last nine months. The HFRI Fund of Funds Index posted a 0.13 percent gain as well.

“A resurgence of investor risk appetite and optimism drove hedge fund performance gains across credit, equity and arbitrage strategies, and enabled over USD100bn in financing to be raised for M&A transactions,” says Kenneth J Heinz, president of HFR. “With equity markets near all-time highs, investors are actively allocating to the hedge fund industry for a number of reasons, including expectations for an end to quantitative easing, historically tight credit markets, opportunities in macro currency strategies and the potential for destabilizing developments in Syria and Iran. Hedge fund investors are positioning to participate in continued equity market gains but also to insulate their portfolios from equity or credit market weakness, rising yields or macro-political uncertainty.”

Hedge Funds, HFRI, Kenneth J. Heinz,

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