Hedge funds lag market indicators

The Hennessee Hedge Fund Index declined 1.9% last month and is off 3.5% year-to-date through March 31, falling short of major market indicators. For the month of March, the Standard & Poor's 500 stock index fell 0.6%, the Dow Jones Industrial Average was unchanged and the Nasdaq Composite Index advanced 0.3%, according to New York-based Hennessee Group LLC. For the first quarter of the year, the S&P 500 was off 9.9%, the Dow was down 7.6% and the Nasdaq was down 14.1%. The Lehman Aggregate Bond Index, meanwhile, rose 0.3% in March and had gained 2.2% for the year-to-date period. Although some hedge funds made good bets on the profitable energy and minerals sectors, most hedge funds lost money in all sectors in March, said Charles E. Gradante, a principal at Hennessee.