Hedge funds uncovered to blockchain and cryptocurrencies corresponding to bitcoin continued to ship sturdy efficiency in February as cryptocurrencies reached “report” highs and hedge funds more and more added crypto exposures.
Knowledge from Hedge Fund Analysis exhibits that each the HFR blockchain and cryptocurrency indices surged by almost 30% in February.
Hedge funds continued the development seen in January with sturdy total efficiency, but additionally with a large dispersion between the highest and backside deciles.
The continuing optimistic efficiency was primarily put right down to rates of interest, commodity costs, and expectations for a return of inflation. Nevertheless, whereas the highest decile of the HFR Index gained 16.3%, the underside decile declined -3.1% for the month.
HFR’s Fairness hedge fund technique index surged by almost 5%, whereas the event-driven index added almost 3%. General, the HFRI Fund Weighted Composite Index gained 4.1% throughout February.
Different notable sectors embrace the vitality/primary supplies index which added 9.7%, and the know-how index which added 4.4%.
Kenneth J Heinz, president of HFR, stated: “New stimulus measures, rising vaccinations, and uncertainty with reference to immigration and vitality coverage have shifted macroeconomic and geopolitical volatility to incorporate not solely the only inventory or asset developments from concentrated, elevated retail buying and selling but additionally cryptocurrency buying and selling, vitality publicity and rate of interest/inflation sensitivity.”
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