The HFRI Fund Weighted Composite Index declined by -0.71% in January; this after posting a gain of 20% in 2009.

Performance was mixed across main hedge fund strategies with gains in Relative Value Arbitrage and Event Driven partially offsetting losses in Equity Hedge and Macro strategies:

HFRI Equity Hedge Index: -0.85%
Losses in Equity Hedge were concentrated in funds focusing on Emerging Markets, Energy/Basic Materials and Technology sectors; both Equity Market Neutral and Short-Bias funds posted gains.

HFRI Event Driven Index: +0.85%
Gains in Event Driven were concentrated in hedged Credit Arbitrage, Distressed and Corporate Special Situations; Activist funds posted losses for the month.

HFRI Macro Index: -2.16%
Losses in Macro funds were concentrated in systematic and commodity-oriented funds; funds with Discretionary investment strategies posted only modest losses for January.

HFRI Relative Value Index: +1.50%
Gains in Relative Value Arbitrage were concentrated in Volatility-oriented and multi-strategy credit funds .

The HFRI Fund of Funds Index declined by -0.70% in January; while the HFRI Emerging Markets Index declined by -1.24%