HFRX Global Hedge Fund Index Gains 0.50% In January

Feb 2 2017 | 11:12pm ET

Hedge funds rode generally positive market trends in the first month of the new year as the dollar fell and equities remained buoyant, according to new data from Hedge Fund Research.

The company’s widely followed HFRX Global Hedge Fund Index gained +0.50% for the month, while its HFRX Market Directional and HFRX Equal Weighted Strategies indexes rose +1.09% and +0.43%, respectively. Three of the family’s four strategy subsets – Event Driven, Equity Hedge, and Relative Value Arbitrage, were positive for the period, while Macro/CTAs continued to slip.

Key highlights from HFR’s January HFRX report:

  • The HFRX Event Driven Index posted a gain of +1.05% for January from gains in Special Situations equity and Distressed/Restructuring managers. The HFRX Special Situations Index posted gain of +1.33% from core positioning in Actelion, Yahoo, Alibaba, ClubCorp, NXP Semiconductors and Reynolds American. The HFRX Distressed Index gained +0.34% for the month from exposure to the U.S. Consumer, Industrial and Technology sectors. The HFRX Merger Arbitrage Index had a decline of -0.28% with core exposures to Suffolk/People's United Financial, FNB/Yadkin Financial and Symantec/LifeLock transactions. 
  • The HFRX Equity Hedge Index posted a gain of +0.85%, as equity markets rose for the month. The HFRX Fundamental Growth Index posted a gain of +2.10% from gains in Emerging Asia, Japan and Global Healthcare exposure. The HFRX Market Neutral Index gained +0.75% with gains from mean reverting, factor based strategies and fundamental managers. The HFRX Fundamental Value Index posted a gain of +0.33% from gains in US large-cap in the Communications and Consumer sectors. 
  • The HFRX Relative Value Arbitrage Index posted a gain of +0.63% from gains in Convertible, Fixed Income and Yield Alternative strategies. The HFRX Convertible Arbitrage Index gained +0.75% for the month as yields remained stable while volatility declined modestly. The HFRX RV: Multi-Strategy Index and the HFRX Fixed Income - Credit Index gained +0.57% and +0.55%, respectively, as yields remained basically unchanged for the period. The HFRX MLP Index gained +3.13% for the month as Energy traded in a narrow range. 
  • The HFRX Macro/CTA Index posted a decline of -0.95% from declines in systematic trend-following managers as the USD declined against all major currencies while Metals and Agriculturals posted gains. The HFX Emerging Markets Index posted a gain of +1.22% from exposure to Emerging Asia, MENA and Latin America. 

Established in 1992, HFR is a global leader in specializing in the indexation and analysis of hedge funds. The company produces the HFRI, HFRX and HFRU Indices, industry benchmarks for global hedge fund performance, and calculates over 100 indices ranging from industry-aggregate levels down to specific, niche areas of sub-strategy and regional investment focus.

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