Hedge funds, as measured by the Dow Jones Credit Suisse Hedge Fund Index, finished January up 2.07 per cent, with nine out of 10 strategies in positive territory.
In total, the industry saw estimated outflows of approximately USD9.3bn in January, bringing overall assets under management for the industry to approximately USD1.78trn.
The multi-strategy and equity market neutral sectors experienced the largest asset inflows on a percentage basis, with inflows in January equal to 0.78 per cent and 0.19 per cent of the December 2012 levels, respectively.
Event driven funds sustained positive performance in January from a combination of situation specific events and broad based market rally. Contributors for the month were both credit and equity asset classes, which drove performance for long holdings.
Long/short equity funds produced positive returns in January. Managers with exposure to healthcare benefited from long positions in companies that announced positive earnings, merger speculation and private equity interest.