New York (HedgeCo.net) – Hedge funds, as measured by the Index, successfully capitalized on opportunities across most global markets as equities, credit and commodities markets rallied. Some key findings from the report include:

• The Index posted positive performance in January, up 0.69%, with six out of ten strategies in the index posting positive performance for the month.

• Convertible Arbitrage was the best performing sector in January, up 2.16% for the month. Managers gained from a valuation richening in the space, driven in part by large institutional investors who were seeking to increase their equity exposure through converts.

• Equity Market Neutral managers also posted positive performance of 1.79%, as managers were able to capture profit opportunities as a result of sector rotations and stock reversals in the equity markets.

• Event Driven managers continued to post positive performance in January, finishing up 1.80% for the month. Performance was primarily driven by core long positions in both special situation equities and distressed credit investments, due to positive developments in key events combined with a rally in post-reorganization equities.

Editing by Alex Akesson