Hedge funds gained ground in January but failed to capture the full rally of the broader markets, according to one industry benchmark.
The HFRX Global Hedge Fund Index rose 1.96% last month, turning in better than half its 2012 performance, up 3.51%, in 2013's first month alone. But that good news was tempered by the Standard & Poor's 500 Index's red-hot January, in which it soared 5.1%.
Only one strategy tracked by the HFRX suite managed to top that, with master-limited partnerships jumping 8.03% last month.
Special situations funds rose 4.22% on the month, event-driven funds 3.38%, fundamental value equity funds 3.08% and equity hedge funds 2.64%. Relative-value arbitrage funds added 1.51%, credit funds 1.39%, convertible arbitrage funds 0.97%, emerging markets funds 0.41%, and macro funds and commodity trading advisers 0.1%.
The only funds to lose ground on average last month were systematic diversified CTAs, which fell 0.08%.