The Lyxor Hedge Fund Index ended the first week of the year close to flat, according to data released by Lyxor.
European equity markets continued to rally while US markets were marginally down and bonds staged a recovery.
Global macro was the best performing strategy, up 0.8 per cent, with fixed income being the main contributor as the US rate increase took a breather.
On the flip side, CTAs continued their poor run, down 0.9 per cent. Their long bonds and energy were the main culprits.
Within L/S equity, European funds delivered strong performance mostly from their long positions in the financial, industrial and healthcare sectors. Their US counterparts underperformed as US stock markets paused after a standout last quarter.
