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
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