Hedge Funds Capitalize On Opportunities
Tuesday, March 01, 2011
A new Dow Jones Credit Suisse Hedge Fund Index monthly commentary concludes
that hedge funds, as measured by the Index, successfully capitalized on opportunities
across most global markets as equities, credit and commodities markets rallied.
The Index posted positive performance in January, up 0.69%, with six out of
ten strategies in the index posting positive performance for the month.
Convertible Arbitrage was the best performing sector in January, up 2.16% for
the month. According to Dow Jones/Credit Suisse, managers gained from a "valuation
richening in the space," driven in part by large institutional investors
who were seeking to increase their equity exposure through converts.
Equity Market Neutral managers also posted positive performance of 1.79%, as
managers were able to capture profit opportunities as a result of sector rotations
and stock reversals in the equity markets, the firms said.
Event Driven managers continued to post positive performance in January, finishing
up 1.80% for the month. Performance was primarily driven by core long positions
in both special situation equities and distressed credit investments, due to
positive developments in key events combined with a rally in post-reorganization
equities.
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