Despite continued market volatility, hedge fund returns appear to have stabilized in the first quarter as funds posted gains of 0.9 per cent between January and March, according to CredPARA_BREAK_SENTINEL_9f8e7d6c Despite continued market volatility, hedge fund returns appear to have stabilized in the first quarter as funds posted gains of 0.9 per cent between January and March, according to Credit Suisse/Tremont Hedge Fund Index. This is compared to a loss of 13 per cent in the MSCI World Index and a three per cent decline in the Barclays Global Aggregate Bond Index. Despite positive performance, overall assets under management for the industry declined an estimated USD163bn between January and March. Total industry assets are now estimated at USD1.3trn (as of 31 March). As of 31 March, an estimated 17 per cent of funds were classified as impaired, meaning they have either imposed gate provisions, suspended redemptions or sidepocketed assets. Global macro, managed futures and convertible arbitrage appear to be gaining momentum and investor interest in the current environment. Further consolidation of the hedge fund industry seems likely, potentially leaving surviving funds better positioned to capitalize on alpha generating opportunities, according to Credit Suisse/Tremont Hedge Fund Index.
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