The Eurekahedge hedge fund index had a relatively flat month in March (up 0.6 per cent), as lowered risk appetites in late-February persisted into early-March and heavy selling – particularly in equities – continued. As most major indices recovered mid-month to finish March in positive territory, hedge fund returns during the month were mainly driven by short-selling, arbitrage and opportunistic plays. In terms of markets, movements in the currency and fixed income markets shored up index performance during the month, as mixed economic data in the US lead to a weakening US dollar and rising, then steadying, bond prices. New York-based Hennessee, an advisor to hedge fund investors, has revealed that their main hedge fund index went up 1.01 per cent in March (3.34 per cent year-to-date), beating all the major indices: S&P 500 rose 1.00 per cent, the Dow Jones Industrial Average 0.70 per cent and the NASDAQ Composite Index 0.23 per cent. Lee Hennessee, managing principal of Hennessee, said: “The first quarter was a relatively successful quarter for most hedge funds, as the increase in volatility allowed them to outperform equities on a relative basis. We believe that a slowdown in the economy should be good for most hedge fund strategies.” These figures include poor performances for futures hedge funds not dissimilar to those from Greenwich which showed falls of nearly 2 per cent in the month and 2.5 per cent year-to-date, although the overall index returned 0.98 per cent last month, giving it a rise of 2.82 per cent year-to-date.