CSFB/Tremont Hedge Fund Index Higher in March

Now up 2.23% year-to-date, hedge funds managed only to outperform the MSCI World Index with its negative return of 0.27%, while S&P Total Returns (0.97%) and the Dow Jones Industrial Average (1.28%) both stayed positive and above the hedge fund mark.   However, the benchmark is once again outpacing the broader equity markets year to date, where the three broader markets are all down, MSCI World (4.94%), S&P Total Returns (3.15%) and Dow Jones Industrial Average (4.19%), according to data released by the CSFB Tremont Index.

Leading March’s charge was the dedicated short bias strategy, which was 1.23% higher, reversing a trend of negative returns that has contributed to a year-to-date return of -3.24%.   This was followed by event driven distressed index up 1.19% for the month and 5.28% thus far in 2003.  

“Markets were very volatile as the war in Iraq resulted in a reversal of the initial sell-off,” said Oliver Schupp, President of Credit Suisse First Boston Tremont Index LLC in the news release.  “Seven out of ten hedge fund strategies provided positive returns despite a very difficult trading environment and increased concerns about the economic recovery.  For the year, the Index is up 2.23% while most equity indices are down between 3% to 4% and markets generally continue to depreciate.”

Other gains for the month were seen in:

• Event Driven Multi Strategy:   1.05%
• Event Driven:   1.01%
• Emerging Markets:   1%
• Convertible Arbitrage:   0.95%
• Equity Market Neutral:   0.79%
•   0.76%
• Long/Short Equity:   0.43%
• Fixed Income Arbitrage:   0.42%

On the other end were hedge fund strategies that lost money in March, led by managed futures at -6.10%, global macro lower by 0.66% and event driven risk arbitrage down 0.27%.   For the year, managed futures and global macro have managed to maintain positive returns of 6% and 3.24%, respectively, while event driven risk arbitrage has remain in the red by 1.37%.

Performance for the CSFB/Tremont Hedge Fund Index is calculated monthly.  March, February and year-to-date returns for all categories are at  www.hedgeindex.com .