Hedge funds, as measured by the Dow Jones Credit Suisse Hedge Fund Index, continued to capitalise on opportunities across most global markets in February as equities, credit and commodities markets rallied.

The Index was up 1.38%, with eight out of ten strategies posting positive performance for the month.

Convertible Arbitrage was the best performing sector in February up 2.90% as managers gained from the continued valuation richening in the space as well as from long-biased positioning with gains coming from special situations and idiosyncratic trades.

Managed Futures managers also posted positive performance of 2.60% as trend followers made gains in commodities – particularly energy and precious metals, which rallied due to the unrest in the Middle East and North Africa.

Event Driven managers posted another positive month, finishing up 1.44% for the month as market rallies continued for both equities and special situations equities that experienced favorable corporate developments.