Hedge funds managed modest overall returns in February, according to the Credit Suisse/Tremont Hedge Fund Index.

Oliver Schupp, president of the Credit Suisse/Tremont Hedge Fund Index reported that the index gained just 0.34% for February. “January’s rising market trend in the U.S. equity market stalled in February, and performance was almost unchanged,” said Schupp. “This limited the possibilities for Long/Short Managers to benefit from net long positions throughout the month.”

“Emerging Market Managers profited with a 1.56% return for February thanks to well performing equity markets and higher valued local currencies. Convertible Arbitrage Managers were able to profit from the higher valuations, and gained 1.18% for the month,” Schupp added.

“Long/Short Equity Managers were well positioned in January, and despite a difficult market environment, gave very little back,” said Robert Schulman, chief executive officer of Tremont Capital Management Inc. “The Global Macro Managers of the Index were up 1.23% in February, profiting from short positions in US bonds as continued GDP growth and inflation concerns left market participants expecting further interest rate hikes.”

The Credit Suisse/Tremont Investable Hedge Fund Index is up an estimated 0.28% net for the month of February. The investable index rose a confirmed 1.86% net in January.

The investable index is designed to give investors broad exposure to hedge funds as an asset class. It is based on the broad index, comprised of the largest funds that are open to investment and meet certain liquidity conditions in each of the 10 style-based sectors.