New York (HedgeCo.Net) – The top three hedge fund strategies last month were Growth (+4.75%), Europe (+3.89%) and Opportunistic (+3.77%). The bottom three strategies for the month were Short Biased (-5.34%), Market Neutral (-0.18%) and Macro (+0.19%).
Hennessee Group LLC announced that the Hennessee Hedge Fund Index gained +2.30% in February (+2.33% YTD), while the S&P 500 jumped +5.49% (+2.21% YTD), the Dow Jones Industrial Average rose +5.64% (+1.74% YTD), and the NASDAQ Composite Index leaped 7.80% (+4.80% YTD). Bonds were negative on the month, as the Barclays Aggregate Bond Index decreased 0.94% (+1.14% YTD).
“While global markets rallied on this news, many feared that these collective actions would not ease the disinflationary trends,” Charles Gradante, Co-Founder of Hennessee Group LLC, said.” Many managers commented that “few companies, whether in the U.S. or abroad, have pricing power.”
The biggest story among hedge funds is the speed with which the Euro and oil have declined. This rapid shift in real and perceived terms has made hedge fund managers very defensive and even more on edge about possible market consequences than characteristic for the investment class.
The Hennessee Arbitrage/Event Driven Index increased +1.88% for the month (+1.56% YTD). The Barclays Aggregate Bond Index lost -0.94% (+2.10% YTD) as interest rates were higher for the month. High yield increased as the Merrill Lynch High Yield Master II Index gained +2.39% in February (+3.09% YTD). High yield spreads were lower in February, decreasing 80 basis points to end the month 446 basis points over treasuries. The Hennessee Distressed Index was positive for the month by +1.75% (-0.83% YTD). The Hennessee Merger Arbitrage Index gained +1.36% for the month (+1.83% YTD). The Hennessee Convertible Arbitrage Index was also positive for the month, losing +1.58% (+0.99% YTD).
Alex Akesson
Editor for HedgeCo.net
alex@hedgeco.net
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