The Eurekahedge Hedge Fund Index gained 2.05%1 in February as optimism about the European debt situation and strengthening global economy fuelled rallies in the underlying markets. The MSCI World Index increased 4.55%2 as investor sentiment remained positive for the second month running.
The first two months of 2012 marked the strongest start to a year in the last 12 years, with the Eurekahedge Hedge Funds Index up 4.35% February year to date (YTD). The sector has witnessed gains across the board as risk attitudes have sustained.
February 2012 and January 2012 returns
Managers investing in emerging markets witnessed the largest gains as all regional mandates finished the month with positive returns. The Eurekahedge Asia ex-Japan Hedge Fund Index delivered a 4.32% return for the month, bringing its figure to a strong 8.79% as at the end of February. Regional managers have profited from a strong performance in the consumer and industrial sectors while also profiting from strengthening local currency exposures. The asset-weighted Mizuho-Eurekahedge Asia ex-Japan Index is up 9.06% as of the end of February showing that larger funds have outperformed over the last two months.