Hedge funds make strong start to 2023

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Hedge funds' strong performance in January has been backed by numbers from another provider, with Bloomberg data providing more evidence that funds caught the upswings in equities and cryptocurrencies. 

Bloomberg's top-level hedge fund index has the industry up 3.62% last month, led by long/short equity (4.86%), digital assets, and event driven (3.51%). Only CTAs were in the red (-0.50%).

The data provider's broader macro index, which includes cryptocurrency funds, gained nearly 5% as bitcoin had its best-ever January. Its macro index excluding crypto was closer to 2.5%.

Long/short equity funds in all geographical regions performed well in January. Top of the pile was emerging Asia, up nearly 10%.

Bottom among long/short equity funds were those focused on Latin America. Here, the average fund was up 1.62% in a month characterised by political discord and volatile markets in the region.      

Last month, the S&P 500 gained 6.2%, while the price of bitcoin increased 35% from under $17k to over $23k.

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