HFR Reports Hedge Funds Up 1.72% In Jan.

Feb 3 2012 | 2:15pm ET

The HFRX Global Hedge Fund Index gained 1.72% for the month of January, amid strong gains for global equities, glimmers of hope in U.S. economic data and improved sentiment with regard to the European debt crisis.

Broken down by strategy, HFR reports event driven funds added 2.80% in January, their strongest showing since May 2007. Distressed funds added 3.10% for the month, their strongest performance in 22 months, while special situations funds gained 2.18%. M&A activity continued with deals in the pharmaceutical and technology sectors, helping merger arbitrage funds add 0.51% in January.

Equity hedge funds were up 2.07%, their best showng since December 2010, with gains concentrated in energy/basic material, financials and technology/healthcare sectors. Fundamental growth strategies added 2.11%, benefitting from exposure to U.S. small cap, Latin America and Asia ex-China, while fundamental value funds added 0.96%, thanks to European positioning while Japanese exposure detracted. Equity market neutral funds added 0.41% for the month.

Relative value arbitrage strategies added 1.72% for January, with gains across all relative value strategies: convertible arbitrage funds added 2.13% and RVA multi-strat funds gained 1.59%. Fixed income-corporate strategies ended the month in the black but yield alternative/energy infrastructure funds experienced declines.

Macro/CTA funds gained 0.09% for the month, thanks to fixed-income and agricultural commodities exposure, partially offset by declines in systematic diversified funds. Systematic diversified CTAs shed 1.00% to start the year. Discretionary global rates currency managers posted gains, while commodity strategies had mixed performance.


In Depth

Hedge Fund Selection: Sussex Partners’ Patrick Ghali Bullish On The Best Of The Best

Oct 2 2014 | 5:56am ET

Ten years ago, Patrick Ghali and Robin Nydes co-founded Sussex Partners with the...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.