The BlackRock Asset Allocation Alpha Fund recorded a loss of -3.39% in March, the Fund's first negative return since July 2008. This brings the Fund's 2009 return to -0.32%.
The main detractors from performance were short equity positions in US, German and Australian markets, reflecting the rallies that occured in these markets in late March. Short positions in the Australian and New Zealand dollar also produced negative returns for the Fund. The manager noted with approval that the speed of the decline of the global economy has eased, and consequently reduced the amount of risk averse positions in the Fund's portfolio (including short equities, long government bonds and short commodity currencies). However they remain skeptical that the rebounds seen in markets in March are the first signs of a global recovery.
