Hedge funds raced to cover their Treasury short positions ahead of the release of inflation data for December as speculation mounted about a looming recession and a slow down in rate hikes, according to a report by Bloomberg.

China's sudden easing of its strict Zero Covid restrictions and the stock market rally that followed, helped prevent Asia hedge funds from chalking up their first year of double-digit losses since the global financial crisis of 2008, according to a report by Bloomberg.

Larger hedge funds outperformed their smaller peers last year for the first time since 2018, according to a report by the Wall Street Journal.

Crypto currency trading hedge funds tracked by index provider BarclayHedge ended 2022 down almost 50%, according to a report by Reuters, with the fallout from the collapse of Sam Bankman-Fried's cryptocurrency exchange FTX still impacting the industry.

Trian Fund Management, the activist hedge fund investment firm currently pushing for changes plus a seat on the board at Walt Disney Co, lost 10.6% last year as many hedge funds incurred losses on the back of market volatility, according to a report by Reuters.

The managed futures industry cut its monthly loss to -0.13% in December, following a -1.33% loss a month earlier, according to the Barclay CTA Index, compiled by BarclayHedge. CTAs were in positive territory for the year, however, posting a 7.33% return for 2022, riding a string of gains in eight of the past 12 months. 

Macro hedge fund LHG Capital Management (LHG) has surpassed $1 billion in assets under management (AUM), consolidating its position as one of the largest pure-play global macro hedge funds in the Asia-Pacific region. 

As recession fears continued to pull equity markets down in December, the hedge fund industry posted its own – if smaller – monthly loss, down -1.68% for the month, according to the Barclay Hedge Fund Index compiled by BarclayHedge. 

The Headstart Fund of Funds successfully navigated last year's volatile markets and recorded a third consecutive year of double-digit positive performance in the process with a 20.67% return. 

Digital asset investment products saw minor inflows totalling $9.2 million last week, while trading volumes remained low at $866 million for the week, both suggesting that the recent rally in digital assets was not investment product led.