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Hedge Funds Outperform Public Markets in a Volatile Start to 2022

Barclay Hedge Fund Index’s January Loss of 2.42% a Fraction of Pain Felt in Public Markets


Losses abounded in January, but the hedge fund industry largely shielded its investors from the worst. Hedge funds in aggregate were down -2.42% on the month, according to the Barclay Hedge Fund Index compiled by BarclayHedge, a division of Backstop Solutions.

January was pretty wretched for broad equity indices, and particularly for technology-focused shares. The S&P 500 Total Return Index was battered by a -5.17% loss and the Nasdaq Composite Index bled -9%.

However, there were a few sunny spots with gains by the Emerging Markets Latin American Equities Index, up 4.94%, the Emerging Markets Latin America Index, gaining 3.07%, the European Equities Index, advancing 1.08%, the Equity Long/Short Index, returning 0.30%, and the Emerging Market Sub-Saharan Africa Index, up 0.03%.

Among the subsectors in the red for January the hardest hit were represented by the Healthcare & Biotechnology Index, off -7.17%, the Technology Index, down -6.31%, the Pacific Rim Equities Index, losing -4.96%, the Equity Long Bias Index, giving up 4.10%, and the Emerging Markets Asian Equities Index, retreating -3.95%.

“Investors were spooked by the price increases in the CPI in January, indicating a 7.5% increase in inflation,” said Ben Crawford, Head of Research at BarclayHedge. ““Meanwhile, U.S. stocks turned in their worst performance since March 2020, with technology, biotech and growth stocks taking the biggest lumps. Despite that, hedge funds broadly navigated the volatility and bloodletting relatively well—a notch in the industry’s favor as a diversifying agent.”

For a complete table of BarclayHedge Hedge Fund and Sub-Index results for January, as well as historical returns, click here.

About Backstop Solutions

Backstop’s mission is to help the institutional investment industry use time to its fullest potential. We develop technology to simplify and streamline otherwise time-consuming tasks and processes, enabling our clients to quickly and easily access, share and manage the knowledge that’s critical to their day-to-day business success. Backstop provides its industry-leading cloud-based productivity suite to investment consultants, pensions, funds of funds, family offices, endowments, foundations, private equity, hedge funds and real estate investment firms.

BarclayHedge, a division of Backstop, currently maintains data on more than 6,900 hedge funds, funds of funds and CTAs. The BarclayHedge Indices are utilized by institutional investors, brokerage firms and private banks worldwide as performance benchmarks for the hedge fund and managed futures industries.



Janet Falk

(212) 677-5770