Hedge Funds Inch up in January

February 15, 2002 (PLANSPONSOR.com) - The CSFB/Tremont Hedge Fund Index ticked up by 0.5% in January, continuing to outperform most major US equity indices.

Over the month, funds employing Emerging Markets strategies, making equity or fixed income investments in developing economies around the world, performed best, increasing by 2.8%.

Global Macro, in which managers take positions that reflect their views on overall market direction as influenced by major economic trends and events, was the next best performing strategy. These funds rose by 2.6%.

Next best were Event Driven strategies, which aim to capture price movements generated by pending corporate events, also performed relatively well, gaining 1.2% over the month.

In comparison,

  • the Dow Jones Industrial Average fell by -1%,
  • the S&P 500 slid by -1.6%, and
  • the Nasdaq decreased by -0.8%

Last month hedge funds gained 1.2% (see Hedge Funds Beat Stock Market in 2001 ).

Performance for the CSFB/Tremont Hedge Fund Index, which comprises 381 funds, and the nine style-driven sub-indices are calculated monthly for capitalization and return. The Index is reselected quarterly.