Hedge funds beating many indexes

The Greenwich Global Hedge Fund Index rose 0.98% in March, bringing year-to-date returns to 2.82%, according to a preliminary report released today by Greenwich Alternative Investments LLC. Last month, the hedge fund index outperformed the Standard & Poor's 500 stock index, the MSCI World Equity, and the FTSE 1000 Indices, which returned 1.12%, 1.59% and 2.21%, respectively. In the first quarter, those indices returned 0.64%, 2.06% and 1.40%, respectively. Fully 17 of the 18 primary and sub-strategies followed by the Greenwich Global Hedge Fund Index generated positive year-to-date returns, of which 14 have increased by 2% or more. The one hedge fund strategy in the red was futures, which was down around 2.5% in the first quarter. Overall, hedge funds did well despite the 416-point drop that the Dow Jones industrial average experienced on Feb. 27. "Hedge funds are not long-only funds, so there is protection built in [when a bear market comes along]," said Margaret Gilbert, managing director of Greenwich Alternative Investments in Greenwich, Conn. "The sensitivity and volatility of hedge funds to the [S&P 500] have been historically lower. If you are going to have a blip, hedge funds are doing what they are supposed to do." The Greenwich Global Hedge Fund Index represents the average performance, net of fees, of 350 reporting hedge funds.