Hedge funds gained 1.18% in February according to the Barclay Hedge Fund Index compiled by BarclayHedge. The Index is up 1.65% year-to-date.
“In the face of Mideast political turmoil and rising commodity prices, the rally in developed market equity prices extended to a sixth consecutive month,” says Sol Waksman, founder and president of BarclayHedge. “Hedge funds have been able to take advantage of the favourable trading environment as evidenced by a gain of 11.1 percent in the Barclay Hedge Fund Index over the past six months.”
Overall, 16 of Barclay’s 18 hedge fund indices had positive returns in February. The Barclay Equity Long Bias Index gained 3.05%, Technology was up 2.31%, Convertible Arbitrage gained 1.65%, Multi Strategy added 1.55%, and Fixed Income Arbitrage rose 1.42%.
“Treasury markets were mixed as fears of inflation early in the month were supplanted by geopolitical uncertainties as the month progressed,” says Waksman. “Prices for high yield debt continued to increase as demand from yield-hungry investors remained strong.”
The Equity Short Bias Index lost 2.91% in February, and the Emerging Markets Index slid 0.58%. Equity Short Bias is now down 3.61% in 2011 after two months of trading. The Barclay Fund of Funds Index gained 0.86% in February.
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