HFRX Global Hedge Fund Index Up +0.19% Through Mid-March

Hedge funds posted gains through mid-March with the HFRX Market Directional Index and the HFRX Global Hedge Fund Index gaining +0.56% and +0.19%, according to new data from Hedge Fund Research.

Two of HFR’s four main strategy subindexes were positive for the period. Key highlights:

• HFRX Equity Hedge Index posted a gain of +0.56% through mid-March with declines from fundamental and market neutral strategies. The HFRX Fundamental Growth Index gained +1.50% for the period from exposure to global healthcare equities and mixed performance from Emerging Markets strategies.The HFRX Market Neutral Index posted a gain of +0.25% from mixed performance in mean reverting, factor-based strategies and fundamental managers. The HFRX Fundamental Value Index gained +0.09% from exposure to U.S. large-cap Technology and Consumer equity.
• HFRX Event Driven Index posted a gain of +0.22% through mid-March from gains in Special Situations equity and Merger Arbitrage strategies. The HFRX Special Situations Index gained +0.85% through mid-month from core positioning in Aetna, Akorn, Altaba/Yahoo, Time Warner, Alibaba, NXP Semiconductors and Monsanto. The HFRX Merger Arbitrage Index gained +0.07% for the month with core exposures to Akorn/Fresenius, Cineworld/Regal Entertainment, Tribune Media/Sinclair Broadcast, Albertsons/Rite Aid, Sanofi/Bioverativ, Silver Lake & P2 Capital/Blackhawk Network, and Prysmian/General Cable transactions.
• The HFRX Distressed Index posted a decline of -1.62% for the month from exposure to Industrial and Energy sectors. HFRX Relative Value Arbitrage Index posted a narrow decline of -0.07% through mid-March from declines in Convertible and Yield Alternative – energy infrastructure strategies. The HFRX RV: Multi-Strategy Index was unchanged for the period from mixed performance in Global Credit managers and MBS strategies. The HFRX Convertible Arbitrage Index declined -0.25% through mid-March as the yield curve flattened and volatility significantly increased.
• HFRX Macro/CTA Index posted a decline of -0.09% through mid-March from declines in systematic trend-following managers which were partially offset by gains in fixed income and Emerging Markets strategies. The HFRX Macro Systematic Index declined -0.57% through mid-month as global equity markets were mixed and the U.S. dollar was also mixed against other currencies; energy commodities posted small gains while Metals declined for the period.

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 more than 100 indices ranging from industry-aggregate levels down to specific, niche areas of sub-strategy and regional investment focus.