Opalesque Industry Update: The Dow Jones Credit Suisse Hedge Fund Index finished up 2.34% in January. A new monthly commentary offers insight into hedge fund performance through the month of January. Some key findings from the report include:
Hedge funds, as measured by the Dow Jones Credit Suisse Hedge Fund Index, finished January up 2.34%; with 9 out of 10 strategies in positive territory;
In total, the industry saw estimated outflows of approximately $15 billion in January, bringing overall assets under management for the industry to approximately $1.72 trillion;
The Equity Market Neutral and Convertible Arbitrage sectors experienced the largest asset inflows on a percentage basis in January, with inflows of 2.27% and 0.87% from December 2011 levels, respectively;
Directional strategies, such as Long/Short Equity, experienced positive performance driven by a risky asset rally. Mean reversion was a notable trend as sectors that performed poorly for the year in 2011 performed well in January;
Tactical trading managers showed generally positive performance. Global Macro managers and Managed Futures funds posted gains as managers benefitted from macroeconomic shifts; and
On the relative value front, managers showed positive performance in January. Fixed Income Arbitrage managers posted gains despite the swift change from a risk-off to a risk-on market.