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Morningstar: Hedge Funds Experience 2.10% Gains for Q107
According to the research firm, most of the hedge fund
gains came in January, with a return of 1.15%. In February
and March, the funds had returns of 0.52% and .54%,
respectively.
The top performing funds were convertible arbitrage funds
and emerging market funds. According to Morningstar, the
arbitrage fund category had 4.67% in gains, benefiting from
increased volatility during the quarter as well as high
levels of convertible bond issuance.
Emerging markets funds returned an average of 5.50%,
with China funds leading the pack.
Developed-market equity hedge funds also performed well,
with commodity (primarily energy), Europe, and Japan funds
taking the lead and the equity net long and equity variable
categories brought in 2.28% and 3.57%, respectively.
Hedge funds in distressed companies returned 4.15% in the
first three months of the year. Event-driven and
merger-arbitrage funds had a good showing as well, picking
up 4.21% and 2.88%, respectively.
Some of the poor performers in the first quarter were
equity net neutral funds, Global macro funds, and managed
futures, according to Morningstar.