Over 90% Of Hedge Funds In Positive Territory

by Carla Johnson, Investors Offshore.com

22 March 2004

With nearly two thirds of all alternative investments having reporting their monthly performance data, over 80% were ahead for the month of February, while more than 90% are in positive territory for the year-to-date, according to figures published in the CogentHedge Monthly Newsletter.

Returns for the month of February were generally positive across all strategies and on average, alternative investments gained 1.684% last month. Although individual entities experienced losses for the month (the greatest reported loss being a decline of over 19%) no investment strategy experienced a loss for the month as a group. The average fund of funds gained 1.23% while the average monthly performance for all single-manager funds was 1.75%, or 1.32% if futures strategies are excluded.

The managed futures classification showed the highest standard deviation of all the major groups, at 6.127, while attaining the second highest average return, at 5.30%. On whole, all investment strategies exhibited monthly returns clustered within relatively narrow ranges.

The top 5 investment strategies in February are as follows: Emerging Markets Equity (5.69%), Managed Futures (5.30%), Regulation D (3.81%), Income (2.43%) and Options Strategies (2.29%).

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