Greenwich Indices: Hedge Funds Up 0.4% To Open '11

Feb 10 2011 | 12:22pm ET

Hedge funds got off to a slow start in 2011, at least compared to the soaring stock market.

The average fund rose 0.4% in January, according to the Greenwich Global Hedge Fund Index. By contrast, the Standard & Poor's 500 Index added 2.4% last month.

Market-neutral strategies—especially in the event-driven and arbitrage arenas—did best. Arbitrage funds added an average of 1.5% and event-driven funds 1.4%. Fixed-income arbitrage funds had an especially strong month, returning 2%, the best of any strategy or sub-strategy tracked by the Greenwich Strategy Group Indices.

Long/short equity funds had a perfectly average month, rising 0.4%. Opportunistic funds rose 1.1%, while short-biased funds dropped 1.2% in the face of rising markets. Long/short credit funds did better than their stock-trading brethren, returning 1.2% in January, while multi-strategy funds rose 0.4%.

Macro funds suffered a difficult January, losing 0.8%, while futures funds dropped 0.5%.

Regionally, the Americas were the place to be at the beginning of 2011: Funds focused on the region's developed markets rose 0.8%. Emerging markets funds rose 0.5%, with emerging Europe leading the way at 2.8%.

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Editor's Note