Managers play safe in bear-market bounce


Hedge fund performance tends to lag in sharp market upturns and March was no exception, as the Asian financial markets headed off to the races in what appears to be a sharp bear-market rally. Time will tell if the run-up in share prices has meaningful legs from here, but judging by the March medians it is clear that many managers have been playing safe.

The result is that the industry's strong outperformance of the past few months on the downside has been tempered.

Nonetheless, it is still encouraging to see Asia including Japan, for example, in positive territory for