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HFRX Global Hedge Fund Index gains +1.72% in January
Global equities posted strong gains to begin 2012 with leadership from Technology and Financials, as US economic data showed signs of improvement and sentiment improved with regard to clarity on resolution of the European sovereign debt crisis. The US Dollar declined against the Euro and Yen, while the US treasury curved steepened as longer dated yields rose. Credit tightened throughout the month while commodity metals rallied, despite a sharp decline in Natural Gas. Hedge Funds posted their strongest gains since 2010, with the HFRX Global Hedge Fund Index gaining +1.72% for the month, while the HFRX Market Directional Index gained +1.88%.
The HFRX Event Driven Index posted a gain of +2.80%, its strongest performance since May '07, with positive contributions across all Event Driven strategies, concentrated in Distressed and Activist strategies. Corporate credit and M&A deal spreads tightened, despite the termination of the NYSE/Deutsche Borse transaction. The HFRX Distressed Index posted a gain of +3.10%, its strongest performance in 22 months, while the HFRX Special Situations Index posted a gain of +2.18% for the month. M&A activity continued with deals in the pharmaceutical and technology sectors, with the HFRX Merger Arbitrage Index gaining +0.51%... Full press release: Source
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