Hennessee: Hedge Funds Up 2.51% In January

Feb 8 2012 | 10:56am ET

Hedge funds added 2.51% in January 2012, trailing the S&P 500 which added 4.36%, according to the Hennessee Hedge Fund Index.

“After several months of treading water, managers posted profits as stocks rallied on fundamentals, being driven less by macroeconomic and political news and more by underlying company specific fundamentals,” said Charles Gradante, co-founder of Hennessee Group, in a statement. “The top performing managers were positioned for a January rally and were long stocks that underperformed in 2011.”

Equity long/short was one of January’s best-performing strategies, according to Hennessee, adding 2.47%, as stocks—particularly technology and financials—made gains and U.S. economic data improved.

Arbitrage/event driven funds gained 2.31% during the first month of the year, their best performance since December 2010. All strategies within this category returned positive results in January, as credit markets (with the exception of Treasuries) advanced for the month. Distressed funds added 3.24% in January while merger arbitrage funds gained 1.25% and convertible arbitrage strategies returned 1.91%. 

Global/macro strategies added 2.89% in January. Emerging market hedge funds were top performers for the month, gaining 6.15%. In addition to the European sovereign debt crisis and a possible slowdown in China, managers are closely monitoring the political and social unrest in the Middle East and several have concerns about Iran and Syria. Hennessee’s Macro Index increased 1.46% for the month.  

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


Hedge Funds Swarm Into Palm Beach

Oct 27 2016 | 2:32pm ET

As the first flakes of snow fall on New York's northern suburbs, Dan Weil of South...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...