Hedge fund index posts modest gains

Date: Thursday, March 10, 2005

Hedge funds gained nearly 2% in February, according to The Barclay Group, thanks to a jump in emerging markets products.
The Barclays/GHS Hedge Fund Index was up 1.98% last month (with nearly 1,000 hedge funds around the world reporting), and year-to-date, is 2.1% higher.
The emerging markets category paced gainers in February, rising nearly 5%. "Recent articles in the financial press proclaiming an era of diminished hedge fund returns obviously haven't taken emerging market funds into consideration," says Sol Waksman, president of The Barclay Group.
"Emerging markets are only now reaching their 1994 highs after having gone sideways for over a decade. Meanwhile, earnings have soared, so valuations are at near-record lows," added Timothy Mistele of Everest Capital. "That's why we think this sector will continue to do well in the future."