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Asia Pacific hedge funds see strong February
28 March 2013
Preqin data shows many strategies struggling during month
Hedge funds focusing on the Asia Pacific region have posted a strong start to 2013, according to Preqin’s latest Hedge Fund Spotlight.
The survey showed that Asia Pacific hedge funds have generated returns of over 6% in the first two months of the year, posting 3.97% and 2.18% in January and February 2013 respectively. However, all strategies posted lower returns in February than January, with North American and European hedge funds only returning 0.61% and 1.24%.
Joe Childs, manager, hedge fund performance, Preqin, said: “Preqin’s February benchmarks indicate that it was a relatively flat month for most hedge funds. However, hedge funds targeting Asia Pacific markets continued with their strong start to the year as Japanese stocks maintained an upward trajectory.”
Across all strategies and regions, hedge funds produced returns of 0.39% in February, down from 2.47% in January . Emerging market strategies were particularly badly hit, returning -0.08%, while macro strategies fared worse, posting a negative result of -0.19.
Returns from long-short strategies fell from a strong 3.18% in January to 0.65 in February.
Funds of hedge funds across all strategies and regions also performed badly, returning 0.05% in February, after starting the year with returns of 2.10%.
Over the past 12 months, Asia Pacific funds have been the strongest performers, returning 10.71%, while event-driven funds saw returns of 9.40% and North America funds produced returns of 9.37%. Europe-focused hedge funds returned 6.88%.
Preqin Hedge Fund Spotlight also found that investors are confident about performance, with 79% of investors believing that hedge fund returns will beat those of 2012 this year.