Hedge funds uncovered to blockchain and cryptocurrencies akin to bitcoin continued to ship sturdy efficiency in February, with cryptocurrencies reaching file highs and hedge funds including an increasing number of exposures to crypto.
Knowledge from Hedge Fund Analysis reveals that the HFR blockchain and cryptocurrency indices rose practically 30% in February.
Hedge funds continued the development noticed in January with good total efficiency, but in addition a large dispersion between the highest and backside deciles.
The continued constructive efficiency is especially attributable to rates of interest, commodity costs and expectations of a return of inflation. Nonetheless, whereas the highest decile of the HFR index rose 16.3%, the underside decile fell -3.1% for the month.
HFR’s Fairness hedge fund technique index jumped practically 5%, whereas the occasion index rose practically 3%. Total, the HFRI fund-weighted composite index rose 4.1% in February.
Different notable sectors embody the power / fundamental supplies index which added 9.7% and the know-how index which added 4.4%.
Kenneth J. Heinz, President of HFR, mentioned: “New stimulus, elevated vaccinations and uncertainty over immigration and power coverage have altered macroeconomic and geopolitical volatility to incorporate not solely tendencies in shares or single belongings from concentrated and scaled-up retailing, but in addition cryptocurrency buying and selling, power publicity and sensitivity to rates of interest / inflation. “
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