Tuesday, February 14, 2012

Hedge funds gain 2.15% in Jan 2012, the strongest monthly return since Dec 2010

The Eurekahedge Hedge Fund Index was up 2.15%1 in January amid a strong resurgence in risk appetite, making it the strongest monthly return for the index since December 2010. The MSCI World Index gained 4.96%2 as markets overcame lingering concerns about the European debt situation and posted strong rallies. The capital-weighted Mizuho-Eurekahedge Index was up 1.80% during the month.

Key highlights for January 2012:

Hedge funds posted their best monthly returns since December 2010, gaining 2.15% in January 2012.

All regions and strategies delivered positive returns in January.

Hedge funds investing in insurance linked securities continue to post excellent profits with low volatility – the funds have delivered annualised returns of 7% and a sharpe ratio of 2, over the last 6 years.

Emerging market macro managers have gained 7.59% in the past 12 months.

Small hedge funds outperformed large hedge funds in January 2012.

Funds of hedge funds witnessed their best monthly return since December 2010.

Early reporting funds indicate that between all the strategies, equity investing funds attracted the largest inflows in January 2012.

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