The hedge funds that reported returns to Morningstar rose an average of 2.1% in the first quarter, outperforming major indexes, including the S&P 500 and the MSCI World Index.

Hedge funds delivered the strongest returns in January, rising 1.15%, and continued to fare well in the following two months of market turbulence, delivering returns of 0.52% in January and 0.54% in February.

Emerging market hedge funds did the best during the quarter, rising 5.5%, followed by convertible arbitrage funds, which rose 4.67%, event-driven funds, up 4.21%, and funds that concentrate on distressed companies, up 4.15%.

Those that didn’t do so well included managed futures, down 2%, global macro funds, down 0.47%, and equity net neutral funds, up 1.51%.

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