Hedge Funds Add 1.34% To Start Year, Credit Suisse Index Shows

Feb 3 2012 | 12:28am ET

Hedge funds got off on the right foot—to an extent—in 2012, posting gains for January, according to a set of industry replication indices.

The Credit Suisse Liquid Alternative Beta Index rose 1.34% last month. Of course, the LAB indices needed a good start less than other hedge fund benchmarks: The LAB index fell just 0.06% last year, which many indices showed was the second-worst year ever for hedge funds.

There's a further caveat to January's good news: Hedge funds still appear to be missing out on much of the upside to be found in stocks. The Standard & Poor's 500 Index rose by more than 4% last month.

Four of the five strategies tracked by the LAB indices posted gains, led by long/short, which rose 2.57%, and event-driven, which added 2.14%. Global strategies rose 0.59% and merger arbitrage 0.49%, while managed futures lost 0.27% on the month.


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Editor's Note