The global hedge fund industry started the year off on a negative note, with a -2.22 per cent aggregate return in January, according to eVestment’s January 2016 Hedge Fund Performance Report.
Peter Laurelli (pictured), eVestment vice president and head of research, author of the report reveals that only 32 per cent of funds were positive in January, but there were some bright spots in the industry. For instance, nearly 70 per cent of macro and managed futures funds were positive last month.
Managed futures funds’ +1.89 per cent return in January is the best monthly aggregate return since January of last year when the universe returned +2.52 per cent. Large managed futures funds, those with greater than USD1 billion in AUM, were +2.52 per cent in January.
Macro hedge funds’ positive start to the year is a welcome sign for a universe that received much negative press in the second half of 2015. Sixty-eight percent of reporting macro funds posted returns in January with an average positive return of +3.70 per cent.
After coming off their second worst year on record behind 2008, distressed hedge funds declined -2.34 per cent in January, the universe’s second worst start to a year since 2008.
Emerging markets began 2016 with the largest January losses since 2008. The decline of -5.48 per cent is the universe’s largest monthly decline since mid-2012. Eight-five perecent of products produced negative returns during the month and the average loss of -7.16 per cent far outpaced the average gain of +1.62 per cent.
