More data on hedge fund performance shows the sector had a good start to the year with an average 1.16% return, except for macro funds.
More than 70% of hedge funds reported positive results for January, according to data provider eVestment.
Brazil focused hedge funds produced the strongest returns in January, at 7.72%. This follows the “exceptional” 31.14% return in 2016 but “disastrous” 29.62% loss in 2015, according to Peter Laurelli, eVestment global head of research.
Laurelli said this highlighted the “tremendous upside” and potential volatility in some hedge fund segments.
Funds focused on other ‘Bric’ (Brazil, Russia, India, China) countries performed strongly in January, with Russia-focused funds returning 4.10%, India-focused funds returning 4.21% and China-focused funds returning 4.17%.
Overall emerging markets-focused funds returned 3.37%.
The data also reflects HFR data earlier this week that showed macro funds underperforming, with a 0.33% loss, and managed futures funds, which lost 0.74%.
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