Hedge funds were up for the fifth consecutive month in March, a month that saw mixed returns in underlying market indices, according to Eurekahedge.
The Eurekahedge Japan Hedge Fund Index has crossed the 200 point mark for the first time to reach its highest level on record, according to the index provider.
Hedge funds posted excellent returns in January on the back of resurgent risk appetite and rallying equity markets globally, according to the latest report published by Eurekahedge.
Returns from the Eurekahedge Hedge fund Index hit 1.98% during January as risk appetite returned and global markets gained.
The Eurekahedge Hedge Fund Index gained 6.19% through 2012 as the global hedge fund industry hit assets under management of $1.77trn, helped by a global market rally toward the year end.
Data from Eurekahedge suggest that the hedge fund industry grew its total assets by $75bn through 2012, as its own benchmark Hedge Fund Index underperformed the MSCI World over the year.
When Alfred Winslow Jones established the first hedge fund in 1949, its fee structure raised eyebrows, notably the fact Jones kept one fifth of his fund's profits for himself.
Investors continue to favour the hedge fund industry's largest funds when it comes to committing new money, and in April that focus was right.
Commonly used hedge fund databases suffer problems of bias, missing data and limitations in identifying correlations between factors such as age and size of funds and their performances, according to academic research from the UK and Finland.
Eleven of the thirteen hedge fund strategies tracked by the Paris-based Edhec Risk Institute posted positive performance in October, although many remained in negative year-to-date territory triggering heavy redemptions.
North America, home to the first ever hedge fund, cemented its position as the region of choice among allocators in May, as its managers recorded sixteen consecutive months of net inflows, according to Eurekahedge.
The industry-high returns and inflows to Japan hedge funds last month could reverse in March, as data shows February's gains came from sectors hardest hit by the country's present disasters.