NEW YORK (HedgeWorld.com)–The end of the first quarter was not a jubilant occasion for many hedge funds, with managers posting negative returns for March.
According to preliminary data from MSCI, hedge funds falling within the MSCI Hedge Fund Composite Index lost 0.5% last month. Still some managers can be consoled by the fact that they are still beating the MSCI World Equity Index, which dipped by 1.9% for the month.
The returns may be tiny, but the stakes are not since many hedge funds are still struggling to overcome 2004′s disappointing gains. For the year-to-date through March, directional-trading strategies lost 2.2%, while the other MSCI indexes posted gains of between 0.3% and 2%.
The Composite Index of hedge funds is up 0.4% year-to-date, while equities are negative 1.1%
According to MSCI preliminary index figures, March did not discriminate much among hedge fund strategies.