Hedge Funds Outperform Major Indices in March

April 9, 2001 (PLANSPONSOR.com) - The Average US Hedge Fund returned -1.1% outperforming the Dow, S&P 500 and NASDAQ during the month, according to preliminary estimates from global hedge advisory firm Van Hedge Fund Advisors International.

During the month the Dow Jones fell by -5.8%, the S&P 500 slid -6.3% and the NASDAQ plummeted by-14.4%.

On a year to date basis, the Average U.S. Hedge Fund decreased by -0.6% in comparison with the Dow and S&P 500 and the NASDAQ which fell -8.0%, -11.9%, -25.5% respectively.

More than 40% of hedge funds reported gains over the month, and 87% outperformed the S&P 500, the equity market continuing to plummet despite the Fed’s rate cut.

The strategies that performed best were those that strive for a negative correlation with the equity market, including:

  • Short Sellers,
  • Market Neutral-Arbitrage, and
  • Market Neutral-Securities Hedging.

Final March performance for US, Offshore and Global hedge funds will be released later this month.