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Investing April 16, 2007
Morningstar: Hedge Funds Experience 2.10% Gains for Q107
April 16, 2007 (PLANSPONSOR.com) - Hedge funds
posted 2.10% returns for the first quarter, outperforming the
S&P 500 and the MSCI World Index, according to research
from Morningstar, Inc.
Reported by Adrien Martin
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.