Hedge funds gained 0.52% in January according latest figures for the Barclay Hedge Fund Index compiled by BarclayHedge.
“Equity markets in the USA and across Europe continued to rally for a fifth consecutive month,” says Sol Waksman, founder and president of BarclayHedge. “Concern over the unrest in Egypt took a back seat to an improving macro economic picture.”
Overall, 14 of Barclay’s 18 hedge fund indices gained ground in January. The Barclay Convertible Arbitrage Index was up 2.13%, Fixed Income Arbitrage gained 1.97%, Distressed Securities were up 1.63%, Technology rose 1.64%, and the Multi Strategy Index gained 1.28%.
“High yield bonds rallied even though yields on the 10 and 30-year Treasuries rose,” says Waksman. “The improving economic outlook simultaneously raised concerns of Fed tightening and reduced fear of defaults.”
The Equity Short Bias Index was down 0.49% in January, Global Macro lost 0.58%, and Emerging Markets slid 0.47%.
“In developing nations where prices for energy and food make up a larger percentage of monthly expenditures, inflation concerns negatively impacted equity markets,” says Waksman.
The Barclay Fund of Funds Index gained 0.27% in January.