Hedge funds gained 2.41 per cent in March, according to the Barclay Hedge Fund Index compiled by BarclayHedge.

The index is now up 0.82 per cent in 2009.

Hedge funds gained 2.41 per cent in March, according to the Barclay Hedge Fund Index compiled by BarclayHedge.

The index is now up 0.82 per cent in 2009.

'After an eight per cent sell-off in early March, the S&P 500 Index bounced back to gain 17 per cent from 9 March to 31 March, its largest three-week rally since 1987,' says Sol Waksman, founder and president of BarclayHedge.

Overall, 15 of Barclay's 18 hedge fund indices gained ground in March.

The Barclay Emerging Markets Index jumped 4.74 per cent, Equity Long Bias gained 3.51 per cent, Technology was up 3.20 per cent, Pacific Rim Equities gained 2.65 per cent, Healthcare and Biotechnology rose 2.36 per cent, and Convertible Arbitrage was up 2.25 per cent.

'Emerging market funds did exceptionally well in March, driven by double-digit returns in the equity markets in Brazil, Russia, India and China,' says Waksman. 'With the sudden upturn in equity markets, Equity Long Bias had its strongest one-month performance since gaining 4.72 per cent in January of 2006.'

The Barclay Fund of Funds Index gained 0.23 per cent in March, and is up 0.61 per cent in 2009.