Hedge funds start year with positive returns, says Eurekahedge

Returns from the Eurekahedge Hedge fund Index hit 1.98% during January as risk appetite returned and global markets gained.

Some 80% of hedge funds reported positive performance during the month, against an average through 2012 of 60%.

The best performing regions were Asia ex-Japan and Eastern Europe & Russia, which returned 5.03% and 7.67% respectively. Japanese hedge funds recorded their strongest January on record, Eurekahedge said.

The MSCI World index gained 4.66% through January by comparison.

Among strategies, it was distressed debt funds that performed best. Over the past six consecutive months this stratetegy has returned an average of 14%.

Equity long-short and event driven strategies also had a good month, with the former up 2.77% and the latter up 1.88% over the month.

CTA/managed futures funds did well, returning 1.69% through the month as captial moved from bonds into stocks and commodities markets, Eurekahedge said.