The index outperformed a -1.19% monthly return and 0.00% quarterly return for the HFRX Global Hedge Fund Index
Santa Monica, Calif., April 14, 2023 – The Wilshire Liquid Alternative Index℠, which provides a representative baseline for how the broad liquid alternative investment category performs, returned 0.09% in March and 1.29% in the first quarter, outperforming both a -1.19% monthly return and 0.00% quarterly return for the HFRX Global Hedge Fund Index. The Wilshire Liquid Alternative Index family aims to deliver precise market measures for the performance of diversified liquid alternative investment strategies implemented through mutual fund structures, backed by a proprietary classification methodology.
Global equities enjoyed a positive first quarter, despite volatility in the banking sector. The U.S. and Eurozone markets appreciated over the quarter with gains led by the consumer and technology sectors, while the energy and health care sectors lagged. The U.K. and Japanese markets also posted gains in the first quarter, with industrials and cyclicals outperforming.
The Wilshire Liquid Alternative Equity Hedge IndexSM ended the month up 1.02%, outperforming the HFRX Equity Hedge Index’s return of -0.14%. For the quarter, the Wilshire Liquid Alternative Equity Hedge IndexSM returned 2.64%, outperforming its HFRX counterpart’s return of 0.80%.
The Wilshire Liquid Alternatives Event Driven IndexSM ended the month down -0.17%, outperforming the HFRX Event Driven Index’s monthly return of-1.57%. For the quarter, the Wilshire Liquid Alternatives Event Driven IndexSM returned 0.40%, outperforming the HFRX Event Driven Index’s return of -0.24%.
The Wilshire Liquid Alternative Multi-Strategy IndexSM, which includes both single- and multi-manager funds, returned -0.64% in March and 1.20% for the quarter.
The Wilshire Liquid Alternative Global Macro IndexSM ended the month down -4.15%, underperforming the HFRX Macro/CTA Index’s monthly return of-3.02%. For the quarter the Wilshire Liquid Alternative Global Macro IndexSM returned -2.34%, outperforming the HFRX Macro/CTA Index’s return of -2.50%.
The Wilshire Liquid Alternative Relative Value IndexSM ended the month up 0.89%, outperforming the HFRX Relative Value Arbitrage Index’s monthly return of -0.62%. For the quarter, the Wilshire Liquid Alternative Relative Value IndexSM returned 1.53%, outperforming the HFRX Relative Value Arbitrage Index’s return of 1.14%.
March proved challenging as the bond market experienced increased volatility, with year-end U.S. rate expectations moving from 5.75% to 3.75% in the space of a week. Equity markets experienced mixed performance during the month, with some indices reaching new all-time highs while others faced renewed pressure from concerns over rising inflation and interest rates.
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