Hedge funds gained nearly 2% in January, according to Eurekahedge. The hedge fund tracker says the gains were due to rising risk appetite and rallying equities markets. The MSCI World Index, by comparison, gained 4.66% last month.
Eurekahedge says 80% of hedge funds reported positive performance in January. That compares to 60% in January 2012.
By region, Asia ex-Japan and Eastern Europe & Russia hedge funds did particularly well, outperforming underlying markets by 5.03% and 7.67%, respectively. By strategy, distressed debt hedge funds did the best, gaining 3.47% in January. Over the past six months, distressed debt has gained 14%, Eurekahedge says.
Managers investing in equities also delivered strong returns. Long-short equity managers gained 2.77%, and event-driven hedge funds posted returns of 1.88% during the month.
Eurekahedge pointed to negotiations in the U.S. to avert the so-called fiscal cliff rallied equities markets around the globe, which contributed to the gains for hedge funds. Improved corporate earnings and upbeat news from the U.S., Europe and China also played a part.
(CG)