Hedge Funds January 2012
Hedge Funds Add 1.34% to Start Off the New Year
After what can only be called a disappointing year for hedge funds with high volatility in the markets and weak performance, hedge funds are back on track with positive performance to start 2012. Hedge funds reportedly added 1.34% in January 2012, according to The Credit Suisse Liquid Alternative Beta Index. However, with the comparative boom in the stock market, 1.3% is actually considerably weak.
The Credit Suisse Liquid Alternative Beta Index rose 1.34% last month. Of course, the LAB indices needed a good start less than other hedge fund benchmarks: The LAB index fell just 0.06% last year, which many indices showed was the second-worst year ever for hedge funds.
There's a further caveat to January's good news: Hedge funds still appear to be missing out on much of the upside to be found in stocks. The Standard & Poor's 500 Index rose by more than 4% last month.
Four of the five strategies tracked by the LAB indices posted gains, led by long/short, which rose 2.57%, and event-driven, which added 2.14%. Global strategies rose 0.59% and merger arbitrage 0.49%, while managed futures lost 0.27% on the month. Source
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