The Hennessee Hedge Fund Index advanced +1.48% in January, while the S&P 500 advanced +1.41%, the Dow Jones Industrial Average rose +1.27%, and the NASDAQ Composite Index climbed +2.01%.
Bonds were again the laggard in January, as the Lehman Brothers Intermediate Government Corporate Bond Index advanced +0.04%.
“January was a good start to the year for most funds,” says Lee Hennessee, Managing Principal of Hennessee Group LLC. “The Hennessee Hedge Fund Index has outperformed the S&P 500 in each of the last three months, despite the fact that equities have been positive, indicating that the environment has been conducive to stock picking.”
“Most managers remain cautiously optimistic on the environment,” adds Charles Gradant, Managing Principal of Hennessee Group. “The S&P 500 has had only one negative month in the last thirteen months and a correction seems imminent.”