Investments in Eastern Europe and Russia are the most profitable?

The Eurekahedge Hedge Fund Index that has studied more than 2,000 funds worldwide has returned 0.8 percent, and an average of 1.3 percent in March. Eurekahedge plans to release a full report on the matter next week.

The researching firm stated funds investing in Eastern Europe and Russia were the best- performers in March with 14.4 percent. As the six other regional indexes continue to advance, the MSCI World Index, tracking 1,678 stocks globally, jumped 7.2 percent, and made March the best month since April 2003. 

Talking about the last quarter of 2008 it should be stated that the industry shrank by over 20 percent, from a maximum of $1.9 trillion the year to $1.5 trillion at the end of December. Moreover, Eurokahedge stated, 96 percent of the reporting funds outperformed the MSCI World Index’s 12.5 percent drop. Hedge funds have been positively affected by investors speculating governments worldwide. 

Some other data that the researching company has revealed was that eight of nine Eurekahedge measures tracking different hedge-fund strategies have increased; that the index tracking commodity trading advisers has fallen 2 percent; that managers who employed relative-value methods taking advantage of mismatches in the price or spread of various securities performer the best, 4.3 percent; and that the index for-short equity funds increased 2.5 percent. 

Hedge funds are mostly private pools of capital whose managers. They participate substantially in the profits from their speculation on whether the price of assets will rise or fall.