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FAIRFIELD, Iowa, March 8, 2007 – Hedge funds continued their strong performance in 2007, gaining 0.84% in February according to flash estimates from the Barclay Hedge Fund Index. The Index is up 1.97% for the year.
“The ripple effects from a one-day collapse in the prices of Chinese equities, coupled with concerns about sub-prime lenders in the US, had many market participants wondering whether this was a correction or the beginnings of a contagion,” says Sol Waksman, founder and president of The Barclay Group.
“In spite of the month-end drama, most hedge fund strategies were able to post profits for February.”
Sixteen of Barclay’s 18 hedge fund indices performed well in February. Barclay’s Event Driven Index jumped 3.24%, Distressed Securities rose 1.75%, Equity Short Bias gained 1.65%, and the Multi Strategy Index was up 1.37%.
“The spill-over effect of the correction in equity prices produced increased volatility in the equity, interest rate, and currency markets,” says Waksman.
“Under the circumstances, many were pleasantly surprised to see that macro funds were able to contain losses as well as they did.”
Only two hedge fund indices lost value in February. The Technology Index was down 0.48%, and Global Macro slid 0.17%. Click here to view ten years of Barclay Hedge Fund Index data.
Sol Waksman is an experienced media source, providing perspectives on hedge fund and managed futures trends.
Call 641-472-3456 or email sol@barclayhedge.com for more commentary or background.
The Barclay Group, founded in 1985, actively tracks 6,000 hedge funds and managed futures programs. Barclay has created and regularly updates 18 proprietary hedge fund indexes and eight managed futures indexes.
Institutional investors, brokerage firms and private banks worldwide utilize Barclay’s indexes as performance benchmarks for the hedge fund and managed futures industries.
