NEW YORK (HedgeWorld.com)–Hedge funds returned 0.88% in February, bringing year-to-date returns to 2.01%, according to the S&P Hedge Fund Index, published by Standard & Poor’s.
The best-performing S&P sub-index in February was the S&P Directional/Tactical Index, which returned 1.93%. That index, which includes futures, global macro and long/short equity fund strategies, also led performance in January .
Managed futures funds in particular added to performance for the Directional/Tactical index. A separate-but-related index–the S&P Managed Futures Index–returned 8.23% in February, bringing its year-to-date return to 9.92%. The Managed Futures index includes the futures strategies in the Directional/Tactical Index and additional strategies not in the broader index.
The second-best performing S&P sub-index was the S&P Event-Driven Index. That index returned 0.63% in February and 2.09% in January and February. The Event-Driven index includes merger arbitrage, distressed and special situations strategies.
Barely positive in February were the strategies in the S&P Arbitrage Index, which returned 0.08%. The index returned 1.22% in the first two months of this year and is made up of equity market neutral, fixed-income arb and convertible arb approaches.
U.S. equity markets rose solidly in February, producing a return of 1.73% for the month and 2.97% year-to-date, according to the S&P 500 Index. Meanwhile, the MSCI EAFE Index returned 2.18% and 3.58% in the same respective periods.