February is turning out to have been a tough month for Australian hedge funds, particularly those with a local equity based mandate, according to figures from Australian Fund Monitors.

Concerns that January's global issues would continue to put downward pressure on equities, commodities and the Australian dollar did not eventuate, leaving some managers with less risk on the table. 

February's reporting season also produced a few results (for example Toll Holdings) which were well outside market expectations.

The index rose marginally by 0.08 per cent in February, with equity based funds falling by 0.04 per cent and non equity based funds gaining 0.34 per cent. The strongest performing strategy was currency/FX, up 1.52 per cent.

The ASX 200 rose by 1.49 per cent in February.