The global $2.85 trillion hedge fund sector enjoyed a buoyant first three months of 2015, new figures show, with strong macro trends in currency and commodity markets - such as the surge in the Swiss franc and movement in the oil price - adding to gains.

The HFRI Fund Weighted Composite Index of Hedge Fund Research, the Chicago-based tracker firm, rose 0.5 per cent in March and was up 2.4 per cent in the first quarter of 2015, completing the strongest quarter of outperformance relative to the S&P 500 since the third quarter of 2011.

All four HFRI main indices were positive for the quarter, and nearly all sub-strategy indices were also positive, underscoring the broad-based nature of the recent positive performance trends.

For the third quarter in a row, macro strategies led industry gains, led by trend following, quantitative CTA strategies, which have benefitted from strong trends and effective positioning in the oil and currency markets over the last year.

The HFRI Macro Index gained 0.7 per cent in March and 3.4 per cent for the first quarter, with macro funds gaining in 10 of the last 12 months. The HFRI Macro: Systematic Diversified/CTA Index gained 1.1 per cent in March and 5.1 per cent for the quarter, with CTAs also posting the tenth monthly gain over the past 12 months.

Other macro sub-strategies contributed to recent gains, with the HFRI Currency Index adding 0.8 per cent in March and 2.2 per cent in Q1, while the HFRI Macro: Active Trading Index advanced 1.0 per cent in March and 3.5 per cent for the quarter.

Equity hedge

Equity hedge strategies, often long/short plays, were the top performing strategies for March, led by contributions from recovering energy with EH: Multi-Strategy exposures. The HFRI Equity Hedge Index gained 0.5 per cent for March and 2.3 per cent for Q1. The HFRI Energy/Basic Materials Index gained 2.5 per cent in March to lead EH sub-strategy performance, while this volatile index experienced a five-month drawdown of over -17.0 per cent through January 2015, as oil and valuations in energy companies fell sharply.

Event-driven hedge funds - such as those making money from M&A deals - also posted gains, with the HFRI Event Driven Index advancing 0.6 per cent in March and 2.0 per cent for the quarter, led by activist and special situations ED sub-strategies.

Fixed income-based relative value arbitrage strategies also posted gains, with the HFRI Relative Value Arbitrage Index advancing 0.3 per cent for March and 1.7 per cent for Q1, as bond yields pierced historical lows and negative nominal levels in response to ECB quantitative easing.

Emerging markets hedge funds experienced regional performance dispersion over the first quarter, with gains in emerging Asia and recovering Russian exposures offset by declines in Latin America and the Middle East, resulting in the HFRI Emerging Markets (Total) Index posting a gain of 1.0 per cent for the quarter.

The HFRI EM: Asia ex-Japan Index added 4.9 per cent while the HFRI EM: Russia/Eastern Europe Index advanced 5.1 per cent for Q1, with the latter beginning a performance recovery after falling -25.6 per cent in 2014. The HFRI EM: Latin America and HFRI EM: MENA Indices fell -7.1 and -2.0 per cent respectively during the quarter.