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CTAs Star in Bleak January for Hedge Fund Performance

By Michael S. Fischer

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Hedge funds eked out a positive return in January, with CTAs on top, according to alternatives data provider Preqin.

The Preqin All-Strategies Hedge Fund benchmark picked up just seven basis points, following a challenging year in 2014.

For the 12 months to January, the benchmark was up 4.2%.

In an otherwise weak performance month, commodity trading advisors continued to ride the wave of solid returns they recorded in 2014, posting a 3.1% return in January and a 12-month rolling return of 14.7%.

Systematic CTAs were up 3.8%, dollar-denominated CTAs up 3.6%, euro-denominated ones up 2.1% and discretionary CTAs up 0.9%.

Hedge fund strategies posted these returns in January:

  • Macro +0.8%
  • Relative value +0.4%
  • Multi-strategy +0.4%
  • Credit +0.1%
  • Equity -0.1%
  • Event-driven strategies -1.1%

Funds of hedge funds reported their third consecutive winning month in January, up 0.4%, their first three-month run of positive returns since December 2013, according to Preqin.

Emerging markets funds lost 1.2% in January, their fifth consecutive monthly loss. These funds were down 3% over the previous six months, but still ahead by 3.5% for the year to January.

— Check out When Hedge Funds Get Hacked on ThinkAdvisor.