Hedge-fund performance continued to improve in February but lagged the broader equity market, according to the latest data from investment researcher Morningstar Inc.
The Morningstar MSCI Composite Hedge Fund Index, an asset-weighted composite of nearly 1,000 hedge funds, rose 1.2% in February, while the MSCI World NR Stock Index posted a 4.9% gain.
Global equities continued to rally throughout February and risk aversion further declined, Morningstar analyst Mallory Horejs said.
Emerging-market equities again performed best, with the Morningstar MSCI Emerging Markets Hedge Fund Index up 3.5%, compared with the MSCI Emerging Market NR Stock Index 6% increase.
European hedge funds reaped the widespread benefits of the latest Greek bailout package and the European Central Banks liquidity program, which buoyed market sentiment. The Morningstar MSCI Europe Hedge Fund Index climbed 2.3% against the Morningstar MSCI Europe NR Stock Indexs 6.3% increase.
