Hedge funds gained by 1.12 per cent in March, according to the Barclay Hedge Fund Index compiled by BarclayHedge, noting that the performance occurred in the face of volatile markets. 

The Index is up 3.96 per cent year to date, and has enjoyed ten straight months of gains.

Overall, 15 of Barclay’s 18 hedge fund strategies were up in March. The strongest performer was the Barclay Healthcare and Biotechnology Index, which rose 2.95 per cent. Pacific Rim Equities, Distressed Securities and Equity Long Bias also posted gains.

The biggest loss in March was posted by the Equity Short Bias Index, which fell 3.20 per cent. Emerging Markets was down 0.52 per cent, and the Technology Index lost 0.31 per cent.

“The mid-month announcement of a flawed Cyprus bailout plan unsettled global markets and sentiment shifted back to risk-off. Interest rates moved lower and equity markets were muted with the notable exceptions ofthe US and Japan. Although credit spreads widened in March, demand for US high yield combined with diminished supply resulted in spread compression for the HY sector,” said Sol Waksman, founder and president of BarclayHedge.