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FAIRFIELD, Iowa, March 15, 2010– Hedge funds gained 0.78% in February according to the Barclay Hedge Fund Index compiled by BarclayHedge. Hedge funds are up 0.42% year-to-date, after gaining 23.74% in 2009.
“Hedge funds bounced back in February, more than making up for their 0.34 percent loss in January,” says Sol Waksman, founder and president of BarclayHedge.
“While US and Asian equity markets gained ground in February, European-linked assets under performed due to concerns about sovereign debt default in Greece and fears of possible contagion impacting the weaker European Union members.”
Overall, 15 of Barclay’s 18 hedge fund indices had a positive return in February. The Barclay Technology Index was up 2.30%, Equity Long Bias was up 1.66%, Healthcare and Biotechnology gained 1.25%, and the Event Driven Index rose 0.98%.
The Barclay Distressed Securities Index is up 3.19% in the first two months of 2010. Distressed Securities gained 30.89% in 2009.
“Bond prices moved higher following Bernanke’s mid-month congressional testimony where he reiterated the Fed’s commitment to maintain low interest rates for an ‘extended period’ of time,” says Waksman. “Rising bond prices typically provide a favorable environment for Distressed Securities.”
On the losing side, Equity Short Bias was down 2.02% in February, European Equities lost 0.62%, and Pacific Rim Equities slipped 0.09%.
The Barclay Fund of Funds Index gained 0.17% in February.
Click here to view five years of Barclay Hedge Fund Index data, or download 13 years of monthly data.
Sol Waksman is an experienced media source, providing perspectives on hedge fund and managed futures trends. For more commentary or background, call 641-472-3456 or email swaksman@barclayhedge.com.
BarclayHedge was founded in 1985 and actively tracks more than 5,800 hedge funds, funds of hedge funds, and managed futures programs. Barclay has created and regularly updates 18 proprietary hedge fund indices and eight managed futures indices.
Institutional investors, brokerage firms and private banks worldwide utilize BarclayHedge indices as performance benchmarks for the hedge fund and managed futures industries.
