Hedge Funds Trounce S&P, Lag Dow in 1Q02

April 15, 2002 (PLANSPONSOR.com) - In an ambivalent stock market environment, the Average US Hedge Fund returned 1.4% net of fees in the first quarter of the year, well ahead of the S&P 500 and the Nasdaq, which returned 0.3% and -5.3% respectively, but behind the Dow, which gained 4.3% over the quarter.

Figures from Van Hedge Fund Advisors International, a hedge fund advisory firm, also show that over the quarter:

  • the Average Offshore Hedge Fund increased by 1.6% net
  • the Average Equity Mutual Fund returned only 0.7%.

Winning Strategies

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While over two-thirds of the hedge funds in Van’s database boasted positive returns over the quarter, the best performing strategies over this three-month period were:

  • US Emerging Markets funds, where a 4.7% increase in March brought the quarterly return to 9.2%
  • Heathcare sector funds, which were up by 5.2%
  • Offshore Emerging Market funds, which returned 5.0%
  • Short Selling strategies, which were up 4.7% over the quarter.

Among US hedge funds specializing in particular market sectors, Communication sector funds gained 2.3% net average.

Month of March

In March, 80% of the funds researched boasted positive returns.

The Average US Hedge Fund gained 2.2% net, its best month since last November, according to figures from Van. Long-biased managers, employing Aggressive Growth or Value strategies were had the strongest monthly numbers, posting returns of 3.9% and 3.8% respectively.

Van Hedge Fund Advisors’ bases its data on information received from the hedge funds in an affiliate’s databases. Hedge fund returns are net of fees and performance allocations.

The March Index was created using a sample of 824 funds. The 1Q02 Index was created using a sample of 825 funds.


 

A Present for Funds of Funds: More Time for Annual Reports

December 28, 2000 (HedgeWorld.com)- 'Twas the day after Christmas, and throughout official Washington, most of the mice were quiet. But on Dec. 26, the Commodity Futures Trading Commission issued new rules extending the deadline for funds of funds to file annual reports, finalizing proposals it had announced on Nov. 7.

Funds of funds can receive automatic, 60-day extension simply by filing a notice with the CFTC and the National Futures Association.

The CFTC announced on Nov. 7 its proposal to extend the deadline and asked for comments. It received four letters, each generally supporting the new rules, although some expressed concern that the criteria for additional extensions were indefinite. The initial deadline for the filing of the annual report for a commodity pool operator that invests in other collective investment vehicles (e.g. a fund of funds,) remains 90 days after the end of the fund’s fiscal year.

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A 60-day extension may be followed by further extensions if funds can show why their accountants have not been able to prepare, certify and distribute the necessary data.

“Commission staff has reviewed past extension requests and found that a substantial majority of the requests have indicated that they can complete their annual report within 150 days of the end of the commodity pool’s fiscal year,” said an explanation of the new rules in the Federal Register.

– Christopher Faille, Reporter        CFaille@HedgeWorld.com

Source: www.HedgeWorld.com

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