Greenwich Mid-Month Update: Hedge Funds Gain +2.45% in January

Feb. 20, 2013 - PRLog -- Stamford, CT, USA, February 20, 2013 – Hedge funds began 2013 with clearly positive results, returning an average of +2.45% in January. 80% of the Greenwich Global Hedge Fund Index constituents posted positive returns in January. Even so, many hedge fund managers seem to be maintaining caution going into 2013 as several issues remain unsettled, namely the European sovereign debt crisis, the US debt ceiling and continued unrest in the Middle East and Asia. The GGHFI average trailed strong January returns in the S&P 500 (+5.18%) and MSCI World (+5.00%) equity indices.

Global Index Strategy Highlights
• The Long-Short Equity Group outperformed all other hedge fund strategies in January, up an average of +3.66%. The Growth strategy posted a particularly strong start to 2013, up +3.93%, though Opportunistic (+3.50%) and Value (+3.37%) strategies were not far behind. Short-Biased managers continued to struggle against the uptrend, losing -5.64%.
• Event-Driven strategies were the runners up in January averaging +2.28%. Merger Arbitrage was the only negative performer in the group (-0.89%) due to limited M&A activity. Distressed Securities strategies were up +2.85% and Diversified Event-Driven similarly were up +2.81%.
• On a regional basis, managers investing in Asian markets were the top performers in January, whether they were focused on Developed (+4.04%) or Emerging (+4.08%) regions. This robust performance is particularly impressive in the face of expectations of slower economic growth for some of the region’s major economies in 2013 and a downwardly spiraling Japanese Yen.
• Overall, Emerging Market strategies (+3.92%) outperformed Developed Market strategies (+2.35%) in January. The Emerging Europe region led the way, up +4.67%.

Strategy Group Summary          January        YTD

         2013          Return

Greenwich Global Hedge Fund Index          2.45%          2.45%

 Market Neutral Group          1.66%          1.66%

   Equity Market Neutral          1.06%          1.06%

   Event-Driven          2.28%          2.28%

       Distressed Securities          2.85%          2.85%

       Merger Arbitrage          -0.89%         -0.89%

       Diversified Event-Driven          2.81%          2.81%

   Arbitrage          1.33%          1.33%

       Convertible Arbitrage          2.36%          2.36%

       Fixed Income Arbitrage          0.96%          0.96%

       Other Arbitrage          1.41%          1.41%

 Long-Short Equity Group          3.66%          3.66%

   Growth          3.93%          3.93%

   Opportunistic          3.50%          3.50%

   Short-Biased          -5.64%         -5.64%

   Value          3.37%          3.37%

 Directional Trading Group          1.38%          1.38%

   Futures          1.20%          1.20%

   Macro          1.83%          1.83%

 Specialty Strategies Group          1.70%          1.70%

   Long-Short Credit          1.35%          1.35%

   Multi-Strategy          1.95%          1.95%

Greenwich Regional Hedge Fund Indices    January         YTD

 Developed Markets          2013          Return

     Composite          2.35%          2.35%

     Global          1.74%          1.74%

     Asia          4.04%          4.04%

     Europe          2.13%          2.13%

     North America          2.78%          2.78%

Emerging Markets

     Composite          3.92%          3.92%

     Emerging Markets Global          3.37%          3.37%

     Emerging Markets Asia          4.08%          4.08%

     Emerging Markets Europe          4.67%          4.67%

     Emerging Markets Latin America/SA          3.28%          3.28%

The GGHFI is one of the oldest benchmarks of the hedge fund universe.  Final Strategy and Regional index results for January will be available in early March, once additional funds have submitted returns.  Past performance and indices construction rules for all Greenwich Hedge Fund Indices may be viewed at www.greenwichai.com.

About Greenwich Alternative Investments  

Greenwich Alternative Investments, LLC (and its affiliates) manages one of the world’s largest hedge fund databases and is among the oldest providers of hedge fund indices, asset management services, and research to institutional investors worldwide.

Contact:

Greenwich Alternative Investments

info@greenwichai.com

www.greenwichai.com