Hedge funds spent all of last year trailing the broader markets, and have opened the new year doing the same.
The Credit Suisse Liquid Alternative Beta Index rose 1.1% in January. But the Standard & Poor's 500 Index added 5.1%, continuing the story of 2012, when the LAB index rose just 3.22% to the S&P500's 16%.
Merger arbitrage funds were tops last month with a 2.31% return, followed by managed futures funds, which were beaten down in 2012 but added 2.19% in January. Event-driven funds rose an average of 1.6% and global strategies 1.45%.
Long/short funds actually lost ground on average, according to the LAB indices, falling 0.94%.