Hedge funds up 1.59%

Hedge funds gained for the second month of 2015. In fact, the Eurekahedge Hedge Fund Index was up 1.59% in February, trailing the MSCI World Index, which ended the month gaining 5.47%. All regional and strategic mandates ended the month in positive territory, with managers focused on developed markets posting the strongest returns.

Read: Hedge funds bearish on oil

Here are some key takeaways.

• Investor allocation activity saw an uptick in February, as hedge funds recorded inflows of US$6.8 billion during the month.
• Distressed debt funds delivered the best performance among all strategic mandates, up 3.03% as their bets on distressed oil and gas producers paid off.
• India-focused managers were down 0.51% during the month — their first month of negative returns after a 12 month winning streak.
• On a year-to-date basis, CTA/managed futures strategies lead the strategy return map, with gains of 3.98%, and have recorded net asset inflows of US$4 billion. This comes after investors redeemed US$16 billion from the strategy in 2014 alone.
• Eastern Europe and Russia mandated hedge funds were the top performers during the month, with gains of 12.49%, snapping a seven month losing streak.

Read: Hedge funds end 2014 up 4.6%

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.