Hedge Funds Remain in Positive Territory in March According to Backstop BarclayHedge; Fed Interest Rate Stance and U.S.-China Trade Talk Progress Fuel Investor Enthusiasm

Hedge funds continued their winning ways in March with a third straight month of positive returns. March’s hedge fund return was 0.67%, according to the Barclay Hedge Fund Index compiled by BarclayHedge, a division of Backstop Solutions.

By comparison, the S&P 500 Total Return Index rose 1.94% in March. Year-to-date through the end of March hedge funds posted a 5.64% return while the S&P was up 13.07%.

“The Fed’s announcement that it would hold interest rates steady for the remainder of the year added fuel to the ongoing uptrends in stock and bond markets,” said Sol Waksman, president of BarclayHedge. “Asian emerging markets responded enthusiastically to signs of a thaw in a U.S.-China trade war, while lower U.S. interest rates added further momentum.”

Leading the way among hedge fund sectors in March were the Emerging Markets Asian Equities Index with a 3.73% return and the Emerging Markets Asia Index which returned 3.49% for the month. Other emerging markets indices also had a positive month, including the Emerging Markets Index posting a 1.83% return and the Emerging Markets Global Fixed Income Index with a 1.80% return.

Among other sectors in positive territory in March were the Balanced (Stocks & Bonds) Index which posted a 0.95% return and the Healthcare & Biotechnology Index with a 0.83% return for the month.

While the vast majority of sectors were in positive territory in March, there were some posting losses for the month, including some Latin American funds. With new economic data for several Latin American countries prompting downward revisions of Latin America growth estimates, the Emerging Markets Latin American Equities Index was down 3.32% in March while the Emerging Markets Latin America Index was off 2.62%.

For the year-to-date through March, top gainers included the Healthcare & Biotechnology Index with a 13.89% return for the first three months, the Emerging Markets Asian Equities Index with a 9.64% year-to-date return and the Emerging Markets Global Fixed Income Index which returned 9.69% for the first quarter. Others with strong year-to-date returns were the Emerging Markets Asia Index which posted a 8.66% return, the Emerging Markets Global Equities Index which returned 9.09% year-to-date, the Equity Long Bias Index with an 8.68% return for the first three months and the Technology Index which returned 8.66% year-to-date.

For a complete table of BarclayHedge Hedge Fund and Sub-Index results for January, as well as historical returns, click here.

About Backstop Solutions 

Backstop’s mission is to help the institutional investment industry use time to its fullest potential. We develop technology to simplify and streamline otherwise time-consuming tasks and processes, enabling our clients to quickly and easily access, share, and manage the knowledge that’s critical to their day-to-day business success. Backstop provides its industry-leading cloud-based productivity suite to investment consultants, pensions, funds of funds, family offices, endowments, foundations, private equity, hedge funds, and real estate investment firms.  

BarclayHedge, a division of Backstop, currently maintains data on more than 6,900 hedge funds, funds of funds, and CTAs. The BarclayHedge Indices are utilized by institutional investors, brokerage firms, and private banks worldwide as performance benchmarks for the hedge fund and managed futures industries. 

MEDIA CONTACT: 

Sol Waksman 

BarclayHedge, a division of Backstop Solutions Group 

(641) 472-3456 

swaksman@barclayhedge.com