Hedge funds started 2021 on a positive note returning 0.98% in January, according to the Barclay Hedge Fund Index compiled by BarclayHedge, a division of Backstop Solutions. By comparison, the S&P 500 Total Return Index was down 1.01% in January.
Gainers outnumbered losers in January among the sectors tracked in the Barclay Hedge Fund Indices, despite challenging news on both the economic and the COVID-19 pandemic fronts during the month.
“Most hedge funds sectors performed solidly during a complicated month,” said Sol Waksman, president of BarclayHedge. “Equity markets reached record highs before tailing off late in the month with the S&P 500 experiencing its worst week since October. Meanwhile, COVID cases surged once again, leading to a U.K. lockdown and a downturn in U.S. employment. Despite the negatives, the hedge fund industry managed to produce a positive month in January.”
Setting the pace among January’s gainers was the Healthcare & Biotechnology Index, up 3.90%. The Merger Arbitrage Index returned 3.65%, the Emerging Markets Asian Equities Index gained 3.46%, the Emerging Markets Sub Saharan Africa Index returned 2.41%, and the Convertible Arbitrage Index advanced 2.36%.
Sectors in the red for January included the Emerging Markets Latin American Equities Index, down 2.48%, the Volatility Trading Index, giving up 1.06%, the Emerging Markets MENA Index, losing 0.92%, the Global Macro Index, off 0.54%, and the Fund of Funds Index, retreating 0.46%.
For a complete table of BarclayHedge Hedge Fund and Sub-Index results for January, as well as historical returns, click here.
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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 7,100 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.
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