Hedge funds post best opening quarter since 2006

Hedge funds posted their best opening quarter performance since 2006, despite seeing flat returns in March.

Hedge funds returned an average 4.9% in the first three months of 2012, according to data provider Hedge Fund Research. By comparison, the funds made 5.9% in the first three months of 2006, but then stumbled from May to July to post 12.9% for the whole year. In 2012, the majority of Q1 gains came in January and February, with March seeing flat returns as gains in equities, event-driven and arbitrage strategies offset losses from global macro declines. For the quarter, equities strategies posted 7.3% - the best opening period since 2000 - as equity markets rallied strongly. This ...