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Opalesque Industry Update - Investor optimism spurred by a variety of favorable conditions pushed hedge funds to a solid start in 2019 with a 3.88% return in January, according to the Barclay Hedge Fund Index compiled by BarclayHedge, a division of Backstop Solutions. All of Barclay's 31 hedge fund indices ended the month with gains. By comparison, the S&P 500 Total Return Index climbed to 8.01% in January. Strong stock market results and relief from the equity market volatility of recent months clearly contributed to hedge funds' positive performance in January. "A robust January effect stock market rally on the heels of a dismal December certainly buoyed the spirits of investors," said Sol Waksman, president of BarclayHedge. "Hopeful signs that U.S.-China trade talks may avert a trade war and indications that Fed tightening was at a pause helped to fuel the market rebound. And a weaker dollar gave a boost to emerging markets funds." Barclay's hedge fund indices were in positive territory across the board in January. Notably, the Healthcare & Biotechnology Index posted a 10.04% return for the month, the Equity Long Bias Index was up 6.24% and the Balanced (Stocks & Bonds) Index returned 4.33%. Other highlights included a 5.28% return from the Technology Index and a gain of 4.14% from the Event Driven Index. Several emerging markets indices were among the month's top performers, led by the Emerging Markets Eastern European Equities Index with a 9.12% return. The Emerging Markets Latin American Equities Index returned 10.90% in January, the Emerging Markets Eastern Europe Index was up 8.25%, the Emerging Markets Latin America Index posted a 9.59% return and the Emerging Markets Global Equities Index was up 6.46%. |
Industry Updates
Hedge funds off to a strong start - Barclay Hedge Fund Index climbs 3.88% in January
Wednesday, February 20, 2019
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