Hedge Funds Post First Monthly Gains Since July

(Bloomberg) -- Hedge funds gained 2.9 percent in January, the first positive return since July, as the rally in stocks offered managers some relief.

Six out of seven strategies made money, according to preliminary figures from the Bloomberg Hedge Fund Database. Event-driven funds led the pack, rising 5.4 percent.

Separately, Hedge Fund Research reported on Thursday that the industry gained 3.5 percent on a fund-weighted basis, the strongest monthly increase since September 2010.

January’s gains marks rare good news for fund managers. The industry had its worst performance last year since 2011 as many were unable to sidestep the volatility that pummeled markets. Among the winners last month were multi-strategy funds run by Ken Griffin and Steve Cohen. Michael Hintze’s flagship fund at CQS U.K. posted its best gain in more than two years.

Hedge Funds Post First Monthly Gains Since July

Equity hedge funds posted notable increases last month, rising 4.4 percent in part due to emerging-markets gains. Emerging-market equities surged 8.7 percent last month and the S&P 500 Index jumped 7.9 percent.

CTA/managed futures were the only laggard last month, falling 1.3 percent.

For more data on hedge funds

  • See HFND and select option 3 for the Bloomberg Hedge Fund Database Snapshot, which offers more details on fund performance
  • See HFS to screen for specific hedge funds
  • “Equity Hedge” is a Bloomberg-created term for strategies where the largest subset of funds is long-short equity and long-biased

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