By Carolina Mandl
       NEW YORK, April 3 (Reuters) - Hedge funds capped the
first quarter with gains across different strategies, as a rally
in stocks, some commodities and the dollar helped the industry
weather a less shiny period for bonds, investors said.
        Fundamental equities long/short hedge funds were up
6.28% in the first quarter, while systematic long/short funds
posted gains of 11%, according to a Goldman Sachs' prime
brokerage report that tracks hedge funds globally. Hedge funds
focused on technology rose 11.3%, it added. 
    The S&P 500 advanced 9.09% in the quarter. Investors
typically consider the hedge component that hedge funds should
provide amid turmoils alongside performance at good times.
    "So far it has been a very good start to the year for hedge
funds," said Ryan Lobdell, head of marketable alternatives at
consultancy Meketa, adding that portfolio managers have
increased exposure to rallying assets. "There has been an
increase in the trendiness of equities and commodities."
    Stocks rallied in the first quarter mainly due to the
outlook that interest rates have reached a peak.
        The quarterly results come on top of a year of positive
performance. Hedge funds posted gains of 8.12% last year,
lagging far behind the 24% posted by the S&P 500.
  
    This year, the rally has broadened beyond the so-called
Magnificent Seven – Alphabet, Amazon.com,
Apple, Meta Platforms, Microsoft, 
Nvidia and Tesla (TSLA.O) -- to sectors such as energy,
financials and industrials.
    "With greater market breadth and increased dispersion, it’s
generally easier to find shorts that aren’t just moving up in
price along with everything else," said Anders Hall, chief
investment officer at Vanderbilt University.
    Portfolio managers have also juiced up returns with an extra
dose of leverage in portfolios, investors said.
    Among strategies that worked: Fresh record commodities
prices for copper, gold and cocoa also helped strategies such as
CTAs (commodity trading advisers) and macro hedge funds,
investors said. Bearish bets on European power markets and
milling wheat yielded gains of 8.6% for AQR's Heliz strategy. 
    Multi-strategy hedge funds, which trade multiple assets in
different ways, have also had a good start.
    After lagging rivals last year, Schonfeld's flagship fund
Strategic Partners ended the quarter with a 6.2% gain, a source
said.
    Citadel had a positive performance in all its funds
strategies, with the flagship Wellington up 5.75%, according to
a separate source.
    Exposure to emerging markets has also paid off for some.
Macro hedge fund Discovery, led by "Tiger cub" Rob Citrone,
posted a 17% net gain, a source said, driven by long positions
in Latin America and short bets in China.
    A more tepid corner of the market for performance was fixed
income, as U.S. Treasuries yields have risen on the outlook that
the Federal Reserve will take longer to cut rates.  
    Citadel's Global Fixed Income fund rose 2.05%,
underperforming the firm's other three funds, a source said.  
    "Global fixed income was particularly challenging given
increasing rates," said Hall. I'd consider a small gain to be a
victory in many cases."
    
    
 Hedge fund     Performanc
                e - Q1
 Schonfeld      6.2%
 Strategic      
 Partners       
 Citadel        5.75%
 Wellington     
 Discovery      17%
 Coatue         6.6%
 Bridgewater    15.9%
 Pure Alpha     
 18%            
 Third Point    8%
 Offshore       
 Third Point    8.7%
 Ultra          
 Citadel        6.3%
 Global         
 Equities       
 Citadel        7.6%
 Tactical       
 Trading        
 Citadel        2.05%
 Global Fixed   
 Income         
 Schonfeld      5.9%
 Fundamental    
 Equity         
 AQR Helix      8.6%
 Strategy       
 
 (Reporting by Carolina Mandl in New York; Editing by Leslie
Adler)