March presented ongoing challenges for hedge funds, with most strategies experiencing declines amid heightened market volatility and geopolitical uncertainties.
The HFRI Fund Weighted Composite Index declined by 1.2% in March, reflecting broad-based losses across various strategies.
Strategy highlights
- Macro Strategies: The HFRI Macro (Total) Index managed a slight gain of 0.06%, buoyed by discretionary macro managers who returned 1.9% for the month. In contrast, systematic macro strategies faced challenges, declining by 0.7%.
- Equity Hedge: Equity-focused strategies struggled, with the HFRI Equity Hedge (Total) Index falling by 2.1%. This decline was driven by losses in fundamental growth and value strategies.
- Event-Driven: Event-driven strategies saw a decrease, with the HFRI Event-Driven (Total) Index down by 1.88%, reflecting challenges in special situations and merger arbitrage strategies.
- Relative Value Arbitrage: This strategy experienced a modest decline of 0.08%, indicating relative resilience amid market turbulence.
- Multi-Strategy: Multi-strategy funds posted gains, with the HFRI Multi-Strategy Index rising by 0.72%, showcasing the benefits of diversified approaches in volatile markets.
As we progress into April, early indicators suggest that market volatility persists, influenced by ongoing geopolitical tensions and economic policy shifts. Hedge fund managers continue to navigate these complexities, emphasizing the importance of agility and diversified strategies to manage risks and capitalize on emerging opportunities.
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