The HFRI Fund Weighted Composite Index declined by 0.71 per cent in January after posting a gain of 20 per cent in 2009.
Performance was mixed across main hedge fund strategies with gains in relative value arbitrage and event driven partially offsetting losses in equity hedge and macro strategies.
The HFRI Equity Hedge Index fell 0.85 per cent. Losses in equity hedge were concentrated in funds focusing on emerging markets, energy/basic materials and technology sectors. Both equity market neutral and short-bias funds posted gains.
The HFRI Event Driven Index rose by 0.85 per cent. Gains in event driven were concentrated in hedged credit arbitrage, distressed and corporate special situations; activist funds posted losses for the month.
The HFRI Macro Index was down 2.16 per cent in January. Losses in macro funds were concentrated in systematic and commodity-oriented funds; funds with discretionary investment strategies posted only modest losses for January.
The HFRI Relative Value Index rose by 1.50 per cent with gains concentrated in volatility-oriented and multi-strategy credit funds.
The HFRI Fund of Funds Index declined by 0.70 per cent in January, while the HFRI Emerging Markets (Total) Index declined by 1.24 per cent.
