The Dow Jones Credit Suisse Hedge Fund Index rose by 0.24 per cent in February, although some strategies lost considerable ground.
The index overall is now up 2.31 per cent for the calendar year following a strong January in almost all strategies.
Six out of 10 strategies finished in the positive in February but dedicated short bias (-1.65 per cent), equity market neutral (-1.28 per cent) and managed futures (-0.77 per cent) lost considerable ground. Dedicated short bias is the only strategy that lost ground in January and is now down 6.79 per cent for the calendar year.
In total, the industry saw estimated inflows of approximately $3.4 billion in February, bringing overall assets under management for the industry to approximately $1.8 trillion, Credit Suisse stated.
The biggest percentage inflows came in fixed income arbitrage and emerging markets, which were respectively up by 1.86 per cent and 1.21 per cent of the January 2013 levels.
Event-driven funds sustained overall positive performance in February, mainly led by long exposure to stressed/distressed credit positions, followed by mixed performance from special situation equities, Credit Suisse said.
Managed futures and convertible arbitrage saw the most significant outflows by percentage of assets. On a sector level, the range of dispersion was largest for managed futures and event driven strategies, according to the index.
The strong result for long/short equity funds came on the back of continued strength across many equity markets. Managers benefitted from exposure to consumer staples and industrials sectors both in the United States and Europe, and the telecom sector in the United States, according to Credit Suisse.
Long/short equity funds gained 0.12 per cent in February and are now up 3.67 per cent for the year, the second best result after emerging markets strategies (up 3.96 per cent for the year).
