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

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

Concerned About Your HFT Exposure? Hedge It!

Mar 26 2015 | 1:06pm ET

High-frequency trading has been a persistent storyline for several years. The trading...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note