Funds of Hedge Funds Performance

Good outlook for economy boosts returns for global equity funds


March was a strong month for global equity markets, and a number of equity long/short managers performed well, while macro strategies made hay thanks to a steepening yield curve and a rise in risky assets. As a result, most funds of funds posted good monthly returns, finishing the first quarter in a pleasingly robust manner.

This move was a reaction to the improving sentiment and expectations for economic recovery, which was backed by a decline in the VIX index that ended the month at 17.6%. That said, there is also talk of inflationary pressure, particularly in the emerging