New York (HedgeCo.net) – The Eurekahedge Hedge Fund Index gained 2.05% in February as optimism about the European debt situation and strengthening global economy fuelled rallies in the underlying markets. The MSCI World Index increased 4.55% as investor sentiment remained positive for the second month running.
The first two months of 2012 marked the strongest start to a year in the last 12 years, with the Eurekahedge Hedge Funds Index up 4.35% February year-to-date (YTD). The sector has witnessed gains across the board as risk attitudes have sustained.
Key highlights for February 2012:
* All regional and strategic mandates report net gains for two consecutive months
* The asset weighted Mizuho-Eurekahedge Asia ex-Japan Hedge Fund Index was up 9.15%
* The Eurekahedge Hedge Fund Index was up 4.31% for the first two months of 2012 as the industry enjoyed its strongest start to a year in the last 12 years
* Assets in macro and CTA/managed futures hedge funds reached historical highs of US$133 billion and US$220 billion respectively
* Long/short equity funds have gained 6.2% as at end-February
* Total assets under management increased by more than US$40 billion during the first two months
* Eastern Europe and Russia investing hedge funds saw a boost of nearly 12%
* UCITS hedge funds continued to witness strong launch activity and asset flows, with newly launched funds attracting over US$1 billion in January and February
The size of the hedge fund industry stands at US$1.75 trillion as total assets under management (AuM) saw an increase of over US$11 billion. Most of this increase was attributed to performance as managers chalked up gains of US$11.2 billion from their portfolios. Net flows were flat to slightly positive for February, standing at US$300 million, as portfolio rebalancing among investors continued. Revised figures for January show that managers attracted US$12 billion during the month and with investor sentiment turning positive once again, the industry is expected to attract significant allocations in the days ahead.
Editing by Alex Akesson
For HedgeCo.net
alex@hedgeco.net
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