Investing April 15, 2002

March Gains Modest for Hedge Funds

April 15, 2002 (PLANSPONSOR.com) - While hedge funds have outperformed the broader markets on a year-to-date basis, they lagged the major market indices in March, data from Credit Suisse First Boston Tremont Index LLC reveals.
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The CSFB/Tremont Hedge Fund Index is up 0.7% for month, compared to:

  • a 3.7% increase in the S&P 500
  • a 6.6% return on the Nasdaq.

While over the year, the CSFB/Tremont Hedge Fund Index is up by 0.7%:

  • compared to a -0.1% dip in the S&P 500
  • a -5.6% slide in the Nasdaq.

Emerging markets funds, which aim to capitalize on the volatile fundamentals of developing countries, returned 3.9% over the month, and took the lead among the style-based sectors year-to-date, up 9.9%.

Event-driven strategies, which aim to capitalize on price movements generated by pending corporate events such as mergers or liquidations, were also among this month’s winners, increasing by 1.2% over the month.
 
The CSFB/Tremont Hedge Fund Index comprised 377 funds, both offshore and US-based, in March 1, 2002.

In order to qualify for inclusion in the index selection universe, a fund must have US $10 million under management, a 12-month track record, and an audited financial statement. 

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