9 Feb 2010
After witnessing some record performances in 2009, hedge funds paused for a breather in January 2010 and delivered a marginally negative performance. The composite Eurekahedge Hedge Fund Index shed 0.84% during the month as markets across the globe declined – the MSCI World Index was down 4.2% amid concerns over the health of financial sector and the global economy.
Hedge funds outperformed underlying markets in January 2010, losing 0.84% while global markets were down 3% to 9%.
Latin American hedge funds witnessed 15 straight months of back-to-back gains, up 29.38% since October 2008, while European hedge funds posted their seventh consecutive month of positive returns, gaining 11.57% over this period.
Distressed debt hedge funds continued their upward trajectory from 2009 by posting 1.61% in January 2010.
January was a month of marginal results across most regional investment mandates. Early reports showed that European managers posted the largest gains of 0.77% – the seventh month of continuous positive results. January returns indicated a significant outperformance as the major underlying markets were down during the month – the MSCI AC Europe shed 5.6%. Japanese funds also fared positively, delivering 0.67% while Latin American funds posted their 15th consecutive month of positive returns by gaining 0.27%.
After posting the best returns on record across all regional mandates in 2009, Asia ex-Japan managers witnessed some losses in January 2010 as the regional markets registered some significant declines. The Eurekahedge Asia ex-Japan Hedge Fund Index was down 1.69% as the underlying markets suffered reversals through the middle of the month. The Shanghai Composite lost 8.8% amid fears of China’s bank lending curbs while other regional indices also posted declines as risk aversion heightened.
In terms of strategic mandates, the bonds sector registered some strong gains, with distressed debt managers posting another month of positive returns. The Eurekahedge Distressed Debt Hedge Fund Index was up 1.61% as the high-yield sector continued to rally. However, widespread risk aversion in the markets also sent money into safer high-grade bonds, helping fixed income and arbitrage managers to post 0.83% and 1.03%, respectively.
Strategies with net long exposure to equities and commodities were negative for January as a series of global events caused significant price reversals in the middle of the month. The tightening monetary policy in China, concerns over the stability of the Greek economy and the proposed financial sector reforms from the US government reversed the gains made in the first two weeks. Hedge fund managers, however, did outperform the underlying markets – long/short equity managers were down 0.79% as opposed to the MSCI World Index’s slide of 4.2%. CTA funds lost 2.81% as commodity prices declined – the CRB Commodities Price Index shed 6% in January 2010.
Hedge funds outperformed underlying markets in January 2010, losing 0.84% while global markets were down 3% to 9%.
Latin American hedge funds witnessed 15 straight months of back-to-back gains, up 29.38% since October 2008, while European hedge funds posted their seventh consecutive month of positive returns, gaining 11.57% over this period.
Distressed debt hedge funds continued their upward trajectory from 2009 by posting 1.61% in January 2010.
January was a month of marginal results across most regional investment mandates. Early reports showed that European managers posted the largest gains of 0.77% – the seventh month of continuous positive results. January returns indicated a significant outperformance as the major underlying markets were down during the month – the MSCI AC Europe shed 5.6%. Japanese funds also fared positively, delivering 0.67% while Latin American funds posted their 15th consecutive month of positive returns by gaining 0.27%.
After posting the best returns on record across all regional mandates in 2009, Asia ex-Japan managers witnessed some losses in January 2010 as the regional markets registered some significant declines. The Eurekahedge Asia ex-Japan Hedge Fund Index was down 1.69% as the underlying markets suffered reversals through the middle of the month. The Shanghai Composite lost 8.8% amid fears of China’s bank lending curbs while other regional indices also posted declines as risk aversion heightened.
In terms of strategic mandates, the bonds sector registered some strong gains, with distressed debt managers posting another month of positive returns. The Eurekahedge Distressed Debt Hedge Fund Index was up 1.61% as the high-yield sector continued to rally. However, widespread risk aversion in the markets also sent money into safer high-grade bonds, helping fixed income and arbitrage managers to post 0.83% and 1.03%, respectively.
Strategies with net long exposure to equities and commodities were negative for January as a series of global events caused significant price reversals in the middle of the month. The tightening monetary policy in China, concerns over the stability of the Greek economy and the proposed financial sector reforms from the US government reversed the gains made in the first two weeks. Hedge fund managers, however, did outperform the underlying markets – long/short equity managers were down 0.79% as opposed to the MSCI World Index’s slide of 4.2%. CTA funds lost 2.81% as commodity prices declined – the CRB Commodities Price Index shed 6% in January 2010.
