Hedge funds were up for the fifth consecutive month in March, a month that saw mixed returns in underlying market indices. The Eurekahedge Hedge Fund Index was up 0.69% during the month while the MSCI World Index  finished with gains of 1.76%.

Funds of hedge funds started 2013 on a positive note amid renewed risk appetite in global markets. The Eurekahedge Fund of Funds Index was up 2.19% in the first two months of the year as underlying single managers witnessed strong returns on the back of rallying global markets. On the flipside, the trend of net negative flows continued from previous years as multi-managers saw net outflows of more than US$25 billion.

The UCITS hedge funds industry has witnessed tremendous growth over the last four years, both in the number of funds and in assets under management (AUM). Currently the total number of funds in the industry is estimated at 949 with AUM standing at US$215 billion.

Eurekahedge talks to Kevin Arenson, Chief Investment Officer and Javier Uribarren, Investment Director at Stenham Asset Management

With the Alternative Investment Fund Managers Directive (AIFMD) due to be implemented in July 2013 asset management firms affected by AIFMD need to consider how they will address AIFMD, and in particular identify which entity or entities will be designated as the alternative investment fund manager(s) (AIFM) of any alternative investment funds (AIFs) managed by them. Because AIFMD allows asset managers to set up management structures using a ‘passport’, it becomes possible to nominate one AIFM which can manage AIFs across the EU.

The Chancellor's Budget rhetoric emphasised the UK's commitment to being a world leader in the asset management sector: the Chancellor stating that "in places like Edinburgh and London, we have a world beating asset management industry. But they are losing business to other places in Europe. We act now with a package of measures to reverse this decline".

The sixth-largest global economy, Brazil represents a very real opportunity for Islamic finance to spread its wings in a hitherto relatively untapped region, while Shariah compliant finance offers Brazil an exciting source of funding to boost development. Alexandre Lopes discusses the opportunities and challenges involved.