Hedge funds returned 1.62% last month, according to RBC Capital Markets' industry benchmark.
All strategies tracked by the RBC Hedge 250 Index gained ground in January, with the exception of macro, which fell 0.29%. Mergers and special situations led the way, up 3.27%, but still fell short of the broader markets, with the Standard & Poor's 500 Index adding more than 5% on the month.
Convertible arbitrage rose 2.57% in January, equity long/short 2.31%, credit 2.07%, multi-strategy 2.02%, fixed-income arbitrage 1.94%, equity-market neutral 0.45% and managed futures 0.44%.
The RBC index gained 5.81% last year.