Hedge funds in January were naturally focused on a few key events, the largest of which being the inauguration of Donald Trump as President of the United States. The month, in terms of performance, was for the most part positive, however there were a few weak spots, notably seen in macro funds and merger arbitrage. Volatility really hasn't begun to elevate, which is an interesting construct, but the fact that hedge funds posted a solid 2016 return over 7% and had a net positive January, the outlook for active management is now positive.
Source: The Hill
Hedge Fund Performance
This was a month unlike one we've seen for quite sometime. As a whole, the HFRX Global Hedge Fund Index posted a return of 0.50%. This continues the streak of hedge funds posting positive returns post-election, despite a stop in the Trump rally for equity markets. This is the continuation of…
