| Poor hedge funds performance figures in April |
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| 30/05/2004 | |
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Preliminary performance figures for hedge funds in April are rather poor according to both the MSCI Hedge Fund Composite Index and the EDHEC-Risk Alternative Index, with performances at a lower level than in March. For the month of April, the early reporting funds in the MSCI Hedge Fund Composite Index, an equal weighted index comprised of the five process group of MSCI indices, returned –1.1% with 62% of funds reporting, down from a definitive 0.4% return in March. The worst performing index for hedge funds that reported through May 13 was the MSCI Directional Trading Index with a –4.1% return, while the best performing one was the MSCI Specialist Credit Index that churned out 1%. Over the same period, the MSCI World Equity Index decreased by 2.0% in April while the MSCI World Sovereign Debt Index fell by 4.3%. Preliminary numbers published by the EDHEC points in the same direction, with the various composite indexes compiled by the organisation all posting lower performance than in March. The single most important fall was in the CTA global index, which is estimated to have fell from a – 0.51% performance in March to a – 5.67% performance in April. Only 3 strategies posted gains according to the preliminary figures, albeit quite limited in face of the expectations of rate hikes and stock market losses. Distressed securities strategies went from 0.46% in March to 1.18% in April, while Fixed Income Arbitrage and Short Selling Strategies respectively increased from 0.03% to 0.73% and –1.48% to 4.33%. Since the beginning of the year, all EDHC indexes post positive return, the only exception being the "short selling" composite index, with a negative 2,20% return. J.L. |
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