NEW YORK (HedgeWorld.com)–Hedge funds in the Hennessee Hedge Fund Index improved their performance in February but still trailed key equity indexes for the month.
The overall Hennessee index rose 1.36% last month, rebounding from a negative 0.29% start in January. But the Standard & Poor’s 500 Stock Index (2.1%) and the Dow Jones Industrial Average (2.63%) both outpaced Hennessee Group LLC’s hedge fund index.
Nevertheless, the overall Hennessee index is ahead for the year when January performance is factored in. For the first two months, the Hennessee index is up 1.07%, while all key equity market indexes have turned in negative performance thus far, despite the boost they got in February.
Leading the way in February–and for the year–are short-biased managers. That strategy returned 6.37% in February despite the equity market rally and is up 12.64% so far in 2005. Second-best in February were managers concentrating on Latin America. They returned 3.6% last month but for the year are up only 0.13% due to a negative 3.35% return in January.
The Hennessee Global/Macro Index earned 2.59% in February, thanks in part to a declining U.S. dollar, rising gold prices and a sell-off in the U.S. Treasury market, according to Hennessee Group officials. Inflation worries drove the Treasury selling in February.