India-focused hedge funds outperformed other emerging markets in Q1

Emerging markets funds were down -0.86% in March and up +9.38% for the year. India-focused hedge funds have outperformed other emerging markets with 16.92% return in the first quarter of 2012. However, Indian funds were the worst performer among emerging markets in March with average return of -4.13%.

Unclear proposed tax rules has negatively impacted the Indian market. The $1.5 billion Macquarie Asian Alpha Fund, one of the top performing in Asia, cut India long exposure in March, joining a number of foreign investors reducing their holdings in the country ahead of the expected tax rules.

eVestment|HFN Industry Report for March, 2012

Q1 Highlights

  1. HFN Hedge Fund Aggregate Index was up 12.59% in Q1.
  2. The average return of all equity focused strategies was +6.69% in Q1 2012.
  3. The average return of all fixed income focused strategies was +3.87% for this year.
  4. Solid Q1 performance for emerging markets funds could not stop the asset outflow.

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