Hedge Funds Rose 0.6% in January Even as Broader Market Fell

Hedge funds gained in January even as the markets were roiled by spikes in global Covid-19 cases and a retail-driven short squeeze.

The industry rose 0.6% last month, according to preliminary figures from the Bloomberg Hedge Fund Indices. Event-driven funds were the biggest winners, with a 2.1% advance. Macro funds were the worst-performing strategy, declining 0.8%.

The S&P 500 slid 1.1% in January for the worst start of the year since 2016. The outlook for the pandemic spooked investors as did amateur traders who banded together to take on big hedge funds that had shorted stocks including GameStop Corp.

Managers including Steve Cohen, Dan Sundheim and Gabe Plotkin suffered losses in January’s day-trading frenzy. Yet several stock funds posted increases. Glenview Capital Management opened 2021 with a 6.4% gain and Falcon Edge Capital, which trounced the markets last year, finished up 4.2% in January.

Strategy1M %
All Funds0.6
Event Driven2.1
Equity Hedge1.2
Relative Value0.5
Credit Hedge0.2
Macro-0.8

Bloomberg Hedge Fund Indices are based on funds reporting to the Bloomberg Hedge Fund Database.

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

©2021 Bloomberg L.P.

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