Hedge Funds Up 3.70% in January, Barclays Says

Hedge funds gained 3.70% in January, according to the Barclays Hedge Fund Index, and emerging markets showed a strong performance, with a 6.81 % gain. "Small cap value and growth stocks were the star performers in US equity markets in

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Hedge funds gained 3.70% in January, according to the Barclays Hedge Fund Index, and emerging markets showed a strong performance, with a 6.81 % gain.

“Small-cap value and growth stocks were the star performers in US equity markets in January,” says Sol Waksman, founder and president of The Barclay Group, which tracks more than 5,100 hedge funds and managed futures programs. “Many long/short equity hedge funds focus on the small-cap sector, where they find the most inefficiency and the greatest opportunity for profit.”

Barclay’s Emerging Markets Index continued its strong performance in January, gaining 6.81%. In 2005, Emerging markets led Barclay’s 18 hedge fund indices with an annual gain of 22.30%.

“Equity markets in the Asia/Pacific region and Eastern Europe also did well in January,” says Waksman. “Quite a few funds that focus on Mainland China, India, or Russia achieved mid-teens returns for their investors.”

Overall, 17 out of 18 Barclay hedge fund indices showed gains in January. Equity long bias was up 4.52%, Technology was up 3.92%, European equities gained 3.68%, and Barclay’s Event Driven Index gained 3.75%. Only equity short bias was down, losing 3.85 percent.

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