Event-Driven Funds Drive Jan. Hedge Fund Returns

Feb 11 2011 | 8:47am ET

Hedge funds badly trailed the broader markets in January, eking out a small return as the stock market rally continued into the new year.

Hedge Fund Research's HFRI Fund Weighted Composite Index opened 2011 with a 0.29% return last month. Event-driven funds set the pace, returning an average of 1.96% in January—private issue and Regulation D funds did particularly well, rising an average of 5.41% on the month.

Relative value funds added 1.04% on the month. Asset-backed funds rose an average of 2.1%, corporate fixed-income funds 1.93%, multi-strategy relative-value funds 1.57% and convertible arbitrage funds 1.5%.

Equity hedge funds did somewhat less well, returning an average of 0.71%. Technology and healthcare specialists did best, returning 1.47%, with short-bias funds their mirror image, dropping 1.47% in January.

Macro funds and emerging markets funds has a tough January, with some exceptions. The former dropped 0.63% on the month and the latter 0.02%, but Russia and Eastern Europe funds soared 3.66%.

Funds of hedge funds edged down 0.27%.


In Depth

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...