Macro hedge funds post gains amid high volatility in Q1

(Reuters) -Macro funds this 12 months posted their highest first-quarter efficiency since 1993, as fund managers navigated properly amid excessive risky markets, a report by hedge fund information supplier HFR confirmed on Thursday.

Macro hedge funds, which wager on macroeconomics tendencies, rose 7.7% within the quarter, based on a macro fund index, helped by skyrocketing commodities costs, rising rates of interest and inflation.

“The mixture of those two highly effective market dynamics of inflation/rates of interest and historic geopolitical threat has contributed to huge dislocations throughout commodity, fairness, and glued earnings markets and unprecedented macro and geopolitical uncertainty, with managers navigating super and fluid volatility,” mentioned Kenneth J. Heinz, President of HFR.

Within the final two quarters of 2021, hedge funds posted losses, however nonetheless ended the 12 months in a constructive observe, with positive aspects of seven.7%.

General, hedge funds ended the primary quarter of this 12 months 0.30% down, the HFRI Fund Weighted Composite Index confirmed, outperforming the S&P index, which declined 4.60%, the report confirmed.

Each fairness hedge and event-driven funds indexes posted losses within the first quarter.

(Reporting by Carolina Mandl, extra reporting by Jamie McGeever; Enhancing by David Gregorio)