HFRX Global Hedge Fund Index Up +1.12% In February, +1.63% YTD

Mar 2 2017 | 10:22pm ET

Hedge funds rode continued momentum in global financial markets in February as investors further developed their 2017 expectations for infrastructure spending, lower taxes and higher interest rates, according to recent data from Hedge Fund Research.

The company’s widely followed HFRX Global Hedge Fund Index gained +1.12% during the month, while its HFRX Market Directional Index and HFRX Equal Weighted Strategies Index rose +1.87% and 1.02%, respectively. 

Global hedge fund performance has been lifted by broad global equity gains, modest U.S. interest rates increases and U.S. dollar strength. 

Key highlights from HFR’s February 2017 Performance report:

  • The HFRX Event Driven Index posted a gain of +1.55% for February from gains in Distressed/Restructuring and Special Situations equity managers. The HFRX Distressed Index gained +2.19% for the month from exposure to the U.S. Energy, Financial and Consumer sectors. The HFRX Special Situations Index posted gain of +1.42% from core positioning in Actelion, Yahoo, Alibaba, ClubCorp, Alere and Reynolds American. The HFRX Merger Arbitrage Index was basically unchanged for the period.
  • The HFRX Equity Hedge Index rose +1.17%  as global equity markets rallied during the month. The HFRX Fundamental Growth Index posted a gain of +2.36% from gains in Global Healthcare, Emerging Asia, Europe and MENA exposure. The HFRX Fundamental Value Index posted a gain of +0.77% from exposure to US large-cap in the Financial, Technology and Consumer sectors. The HFRX Market Neutral Index was basically unchanged from mixed performance of mean reverting, factor based strategies and fundamental managers. 
  • The HFRX Macro/CTA Index posted another strong month with a gain of +1.18%  on strength in systematic trend-following managers. The HFRX Systematic Diversified/CTA Index gained +2.63% as Precious Metals rose, Rubber, Cocoa and Coffee declined while the USD rose against the Euro, Swiss Franc and British Pound . The HFX Emerging Markets Index posted a gain of +0.52% from exposure to Emerging Asia, MENA and Latin America. 
  • The HFRX Relative Value Arbitrage Index rose +0.62% for February from gains in Convertible and Fixed Income strategies. The HFRX Convertible Arbitrage Index gained +1.58% for the month as yields posted modest gains while volatility declined. The HFRX Fixed Income - Credit and Index HFRX RV: Multi-Strategy Index gained +0.77% and +0.51%, respectively, as yields rose modestly. 

Established in 1992, HFR is a global leader in specializing in the indexation and analysis of hedge funds. The company produces the HFRI, HFRX and HFRU Indices, industry benchmarks for global hedge fund performance, and calculates over 100 indices ranging from industry-aggregate levels down to specific, niche areas of sub-strategy and regional investment focus.

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