The composite Eurekahedge Hedge Fund Index rose a strong 1.4%1 in March, finishing 1Q2009 up 1%, in contrast to the MSCI World Index which is down 12.5% for the quarter. The month’s gains were delivered against a backdrop of sharp reversals in the underlying markets – equities rose 7.2% during the month, due to action from governments and policy-makers across the board, coupled with encouraging news about the profitability of major US banks. Commodities rose 4.4%, as measured by the Continuous Commodity Index, with crude oil, energy and agricultural commodities driving the markets, during the month.
Gains across most regional investment mandates were realised from long exposure to the equity markets. Asia ex-Japan investing funds were up 3.5%, as equities in regional markets like China, India, Taiwan and Korea, among others, rose dramatically during the month; the MSCI Asia Pacific ex-Japan Index was up 14.6%. European managers returned 2.7% on average, as impressive gains averaging 13.5% for Eastern Europe- and Russia-investing funds, on the back of a 19% rise in regional equities, positively skewed the region’s average.
