Hedge funds globally sunk into their first negative territory since last August with a 0.17% loss in January, mainly due to a 0.47% drop of long/short funds, according to a report by private equity research firm Preqin.
Asia Pacific-focused funds suffered loss of 0.51% last month, largely caused by negative returns recorded by equity arbitrage funds. After being the worst performing regional player last year, emerging market-focused funds again disappointed with an average 2.27% loss in January.
In contrast, Europe was the best performing region globally as hedge funds there returned 0.65% last month. North America-focused funds followed closely in second place, with returns of 0.55%.
In terms of strategy, relative value was the best performing strategy with a 0.77% gains. and event driven strategy, which record a 0.66% return in January. The long/short arbitrage strategy performed the worst for January.