Monday, 8 February 2016
Last updated 26 min ago
Feb 16 2011 | 8:43am ET
Hedge funds gained 0.52% in January according to the Barclay Hedge Fund Index.
“Equity markets in the USA and across Europe continued to rally for a fifth consecutive month,” said Sol Waksman, founder and president of BarclayHedge.“Concern over the unrest in Egypt took a back seat to an improving macroeconomic picture.”
Overall, 14 of Barclay’s 18 hedge fund indices gained ground in January. Convertible arbitrage funds were up 2.13%, fixed income arbitrage funds gained 1.97%, distressed securities were up 1.63%, technology funds rose 1.64%, and multi-strategy funds gained 1.28%.
“High yield bonds rallied even though yields on the 10- and 30-year Treasuries rose,” says Waksman. “The improving economic outlook simultaneously raised concerns of Fed tightening and reduced fear of defaults.”
Equity short bias funds were down 0.49% in January, global macro lost 0.58%, and emerging markets slid 0.47%.
“In developing nations where prices for energy and food make up a larger percentage of monthly expenditures, inflation concerns negatively impacted equity markets,” says Waksman.
The Barclay Fund of Funds Index gained 0.27% in January.