The Van Global hedge funds index and the CogentHedge community index showed positive returns of abou...
The Van Global hedge funds index and the CogentHedge community index showed positive returns of about 2% for January.
The Van index gained 2.1% to 10,863.17 net of fees in January, according to a report by industry consultant Van Hedge Fund Advisors International, while the average CogentHedge-monitored fund returned 1.8% for the month.
The Van return represents the average January performance of more than 800 hedge funds from around the world. The index also returned 2.1% when excluding funds of funds.
The Van US hedge fund index, which includes only US-domiciled hedge funds, returned 2.2% net for the month, while the Van Offshore hedge fund index, which includes those funds based outside the US, rose 2.0% net.
About 86% of the January returns in the Van Global hedge fund index were positive. Returns ranged from less than -9% to more than 22%.
Hedge fund performance generally fell in line with that of the stock market last month, as the S&P 500 returned 1.8% and the Nasdaq rose 3.2%. About 44% of hedge funds in the Global index outperformed the S&P 500.
The Long/Short Equity Group performed best of the four strategy groups in the Global index, returning 2.5% net in January.
The Market Neutral Group averaged 1.8% net for the month, while the Specialty Strategies Group and the Directional Trading Group returned 1.7% net and 1.1% net, respectively.
Of the individual strategies in the Van index, Emerging Markets performed best, earning 3.5% net.
Emerging Markets was the highest returning strategy in 2003, when it generated a 41.3% net gain.
Distressed Securities and Aggressive Growth were the second- and third-highest returning Global strategies in January, gaining 3.4% net and 3.3% net, respectively.
Over its 16-year and one-month history, the Van index has generated a net compound annualised return of 16%.
The CogentHedge results showed 61% of registered funds recorded positive results, with only short-selling strategies having experienced a loss for the month.
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