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Thursday, July 18, 2019

February 2008 Performance Review of the Dow Jones Hedge Fund Strategy Benchmarks


Date: Friday, March 7, 2008
Author: Riskcenter.com

Four of the six hedge fund strategies covered by Dow Jones Hedge Fund Indexes posted positive returns for the month of February.

Merger Arbitrage and Equity Long/Short were the leaders for the month with net-of-fees gains of 1.95 percentand 1.49 percent, respectively. However, Merger Arbitrage is the only strategy with positive gains for the year, and Equity Long/Short has lost 4.67 percentin the first two months -- the worst so far in 2008. Event Driven and Equity Market Neutral posted returns of 0.86 percentand 0.63 percent, respectively. Convertible Arbitrage posted a loss of -0.02 percentand is down 0.24 percentfor the year. Lastly, Distressed Securities continued to decline for the year, losing -0.51 percentin February and bringing its YTD performance to -4.01 percent.

DJHFSB

February 2008

YTD

Convertible Arbitrage

-0.02%

-0.24%

Distressed Securities

-0.51%

-4.01%

Equity Long/Short

1.49%

-4.67%

Equity Market Neutral

0.63%

-0.46%

Event Driven

0.86%

-0.83%

Merger Arbitrage

1.95%

0.44%

Dow Jones Wilshire 5000

-3.01%

-8.89%

Dow Jones Wilshire Global Index

0.48%

-7.85%

Dow Jones Corporate Bond Index

-0.13%

1.56%

On a float-adjusted basis, the Dow Jones Wilshire 5000, the only broad measure of the domestic equity market, returned -3.01 percent(-2.97 percenton a full-cap basis) in February, bringing its YTD performance to -8.89 percent(-8.91 percenton a full-cap basis).

The fixed income asset class, as measured by the Dow Jones Corporate Bond Index returned -0.13 percentthis month and its cumulative gain for 2008 stands at 1.56 percent.

Finally, the Dow Jones Wilshire Global Index,the broadest measure of global equity markets, posted a return of 0.48 percentin the second month of 2008 and has a year-to-date loss of -7.85 percent.