Hedge funds see “slightly positive” January
Posted 10 February 2011 - 6:33pm by Stephanie Baxter
The hedge fund industry took a “breather” in January after strong positive results at the end of 2010, according to new figures released by Eurekahedge.
The Eurekahedge Hedge Fund Index gained only 0.01% in January while the Eurekahedge UCITS Hedge Fund Index came in at 0.48%, which were low in comparison to the MSCI World Index which went up by 1.87%.
Despite low returns, Eurekahedge claims that January was the seventh consecutive month of positive returns for hedge funds. It was also the month for strong launch activity, where more than 30 hedge funds were set up.
Hedge funds investing in developed markets were the best-performers, where Japanese hedge funds topped the list with a strong return of 1.36%. The Eurekahedge North American Hedge Fund Index gained 0.67% while European hedge funds went up by 0.10% during the month.
Emerging markets had mixed returns in January, however, as Latin American hedge funds went down by 0.44% and Russian hedge funds rose by 2.37%. Asia ex-Japan funds also performed well with gains of 0.24%, as did funds investing in Eastern Europe with an increase of 1.36%.
The low results for Latin America and Asia ex-Japan follow losses in the MSCI EM Latin America Index and MSCI AC Asia Pacific Ex Japan Index, which were down 4.17% and 0.59% respectively.
Hedge funds that focused on fixed income had the best performance in January in comparison to different strategic mandates for the month. The Eurekahedge Fixed Income Hedge Fund Index climbed by 2.45%, while the Eurekahedge Long/Short Equities Hedge Fund Index went up by only 0.12%.