The latest data from the Bank of America Merrill Lynch Hedge Fund Monitor show that, while markets were down in January, hedge funds lost significantly less ground than did the S&P 500. The diversified investable hedge fund composite index fell 0.28% as of January 29. Through the same time period, the S&P 500 was down 4.01%.
The data also show that convertible arbitrage and equity market neutral “were the best performing hedge fund strategies last month, up 0.99% and 0.57%, respectively,” according to a report from Finalternatives. A number of hedge fund strategies adjusted their long/short positions relative to the S&P 500 and other major indices and products.
Learn more about hedge fund performance and strategies from January online from Finalternatives.