Funds of Hedge Funds

Arbitrage leads the way as volatility grips markets


February was largely flat, with the InvestHedge Composite down 0.1%, although year-to-date performance is still up 0.77%.

Arbitrage was the top performer for the year to date at 1.35%, with February's 0.02% return coming as convertible arbitrage players took advantage of continuing equity market volatility. Global multi-strategy managers were the only others in positive territory: up 0.01% in February and 1.14% year-to-date.

Global equity funds of funds were down 0.21% in February, but they bucked the general trend of global equity indices that were down between 5% and 12% as bad news and financial instability continued to cause