Evidenced by a 0.8 percent dip in the share value of the IQ Hedge Multi-Strategy Tracker(QAI), hedge strategies grudgingly gave up some ground in March.
Evidence of the growing disfavor in emergingcame in the form of a billion dollar (1.7 percent) asset leakage from the Vanguard FTSE Emerging Markets ETF (VWO). VWO’s share price lost 1.3 percent in March. At the same time, the IQ Hedge Macro Tracker ETF (MCRO) eased 0.3 percent.
Domestic fixed income yields and credit spreads were mostly stable for the month. A flattening in the two-to-ten year government segment was reflected in the market price of the iPath US Treasury Flattener ETN (FLAT)which ended the month 1.3 percent higher.
Investors flocked to the SPDR Barclays Capital Convertible Securities ETF(CWB)which picked up more than $46 million (4.5 percent) in assets on a 2.3 percent hike in its share price.
On the futures front, natural gas topped the plus list for March, next to rises in the prices of crude oil, wheat, cotton and gold. Trend following strategies, represented by the ELEMENTS S&P CTI ETN (LSC), benefited modestly. LSC’s market price ended the month with a 0.7 percent gain.
A counter trend rally in gold boosted the price of the SPDR Gold Shares Trust (GLD) by 0.9 percent, though investors pulled nearly $l.9 billion (2.9 percent) from its asset base.
Event-driven hedge strategies featured M&A transactions in T-Mobile/MetroPCS, Sprint Nextel/Clearwire, Berkshire/Heinz and Aetna/Coventry Healthcare. Investors boosted the assets of the IQ Hedge Merger Arbitrage ETF (MNA) by 10.2 percent as its share price ticked up 1.1 percent.
The equity hedge fund categorywas a mixed bag in March. A long/short strategy, exemplified by the Credit Suisse Long Short Liquid Index ETN (CSLS), gained 1.7 percent, but the QuantShares US Market Neutral Anti-Beta ETF (BTAL) lost 0.7 percent.
A short bias fund, theAdvisorShares Ranger Equity Bear ETF (HDGE) edged up 0.7 percent as more than $27 million in net inflows lifted its assets by 13.4 percent.