New York (HedgeCo.net) – Hedge funds enjoyed a slightly positive January, but trailed most stock-market indexes. The Morningstar 1000 Hedge Fund Index and the currency hedged Morningstar MSCI Hedge Fund Index rose 0.4% and 0.2%, respectively.
“Many hedge funds posted strong performance in January, but losses in global-macro and trend-following strategies overshadowed any overall gains in the industry,” said Nadia Papagiannis, alternative investment strategist for Morningstar.
Meanwhile, the S&P 500 and MSCI World Indexes were both up more than 2%. For 2010, investors added $1.9 billion to hedge funds in Morningstar’s database. The bulk of those assets went to global non-trend funds, while funds in the distressed securities, multi-strategy, global debt, and global equity categories leaked the most assets.
Multi-strategy funds significantly outpaced hedge funds of funds in January. The Morningstar Multi-Strategy Hedge Fund Index rose 1.5% while the Morningstar Hedge Fund of Funds Index increased only 0.1%. Hedge funds of funds in Morningstar’s database saw $13.0 billion in outflows in 2010.
Editing by Alex Akesson
For HedgeCo.net
alex@hedgeco.net
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