Hedge Funds on the Rise, Advance 1.10% in January

New York (HedgeCo.Net ) – After a disappointing 2008, hedge funds seem to be on the up and up, advancing 1.10% in January according to the latest research by the New York-based Hennessee Group.

According to the research, convertible arbitrage funds are leading the pack, advancing 5.79% in January with the Arbitrage/Event Driven Index advancing 2.36% as a whole.  Following suit was the long/short equity strategy, which was up .90% for the month.  Experts analyzed this was due to profits made from shorting earnings, since only 55% of companies had met earnings expectations in January.  In addition,  the Global/Macro fund index rose .44% for the month.

Mutual funds also seem to be showing signs of revival.  “We are encouraged by the $6.5 billion that poured into mutual funds during the last week of January,” said Lee Hennessee, Managing Principal of Hennessee Group. “We continue to monitor fund flows and believe that if this trend continues, it could be basing and a bullish sign for equity markets.”  

Hedge funds outperformed the markets last month across the board.  The S & P 500 dropped 8.57%, the NASDAQ Composite Index declined 6.38% and the Dow Jones Industrial Average dropped 8.84%.

Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net

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