The benchmark Eurekahedge Hedge Fund Index was up 2.32%1 while the MSCI World Index gained 4.66% over the month.
Total assets under management were up by $17.8 billion during December – the sector added performance-based gains of $13.9 billion while also witnessing net positive asset flows of $3.9 billion. The total size of the industry now stands at $1.79 trillion.
Highlights from this month’s report:
- Hedge funds witnessed the strongest monthly return in 24 months, and the best January return in 7 years – up 2.32% in January 2013
- Asian hedge funds posted their best January return on record, up 4.15%
- 83% of hedge funds reported positive returns in January compared to the 2012 monthly average of 60%
- The population of Asian hedge funds declined in 2012 with 123 launches and 148 closures – total number of funds currently stand at 1291, managing $127.8 billion
- Japanese hedge funds delivered the best monthly return since December 2005 and strongest January return on record – up 5.25%
- CTA/managed futures funds gained 1.77% in January – more than their annual 2012 return
- Revised figures for December 2012 show that the hedge fund industry grew by $6 billion during the month and nearly $70 billion in 2012