Hedge funds post monthly gains
Hedge funds gained 2.9 per cent in January, the first positive return since July, as the rally in stocks offered managers some relief.
Six out of seven strategies made money, according to preliminary figures from the Bloomberg Hedge Fund Database. Event-driven funds led the pack, rising 5.4 per cent.
Separately, Hedge Fund Research reported on Thursday that the industry gained 3.5 per cent on a fund-weighted basis, the strongest monthly increase since September 2010.
January’s gains mark rare good news for fund managers. The industry had its worst performance last year since 2011 as many were unable to sidestep the volatility that pummelled markets. Among the winners last month were multi-strategy funds run by Ken Griffin and Steve Cohen.
Michael Hintze’s flagship fund at CQS UK posted its best gain in more than two years.
Equity hedge funds posted notable increases last month, rising 4.4 per cent in part due to emerging-markets gains. Emerging-market equities surged 8.7 per cent last month and the S&P 500 Index jumped 7.9 per cent. CTA/managed futures were the only laggard last month, falling 1.3 per cent.