Hedge funds return nearly 4% in January

Date: Monday, February 13, 2006
Author: Advisor.ca

The average hedge fund manager earned their clients 3.7% in January, taking advantage of market inefficiencies in the small-cap sector, according to the Barclay Hedge Fund Index.

"Small-cap value and growth stocks were the star performers in U.S. equity markets in January," says Sol Waksman, founder and president of The Barclay Group. "Many long/short equity hedge funds focus on the small-cap sector, where they find the most inefficiency and the greatest opportunity for profit."

The best returns were found in China, India and Russia, though, where some funds managed returns in the mid-teens for the month. Barclay's Emerging Markets Index gained 6.81%, leading the pack of 18 indices. Only the Equity Short Bias posted a loss, dropping 3.85%.