In summary...
Global growth surprised markets positively in Q1 2023.
Global equities*** and bonds** returned 6.35% and 3.19% respectively.
Strategies with higher beta to equities outperformed more divergent strategies. Asset weighted average hedge fund return was 1.45% in Q1 2023.
March was the standout month of poor performance with hedge funds down 0.39%, Macro (down 2.46%) and Quant (down 2.33%) being the biggest detractors.
Interest rate moves resulting from several high-profile bank failures in March, had a significant impact on Macro strategies.
5 year CAR for hedge funds was at 4.42% at the end of the quarter, above bonds at -1.66% and just below equities at 4.49%.
Dispersion has fallen over the quarter returning closer to the observed long-term trend prior to 2020.
