Hedge Funds Gain in February for Strongest Start Since 2012

(Bloomberg) -- Hedge funds are off to their strongest start since 2012 as managers reap the benefits of a global market rebound.

The industry saw gains for the second month in a row, rising 1.4 percent in February and 4.9 percent for the year on a fund-weighted basis, according to Hedge Fund Research Inc.'s monthly report, released Thursday. The returns were led by equity strategies, which rose 1.8 percent on average last month and are up about 7 percent for the year.

February's advance has helped bring relief to beleaguered hedge fund managers, who saw their worst annual performance last year since 2011. Multi-manager firms led by Ken Griffin and Izzy Englander were among the bright spots. The S&P 500 Index returned 11.5 percent for the first two months of the year, with dividends reinvested.

All four of the main hedge fund strategies tracked by HFR -- equity, event-driven, macro and relative-value -- reported gains in February and 2019.

To contact the reporter on this story: Alexandra Stratton in New York at astratton4@bloomberg.net

To contact the editors responsible for this story: Margaret Collins at mcollins45@bloomberg.net, Melissa Karsh, Josh Friedman

©2019 Bloomberg L.P.