Hedge Fund Reader : Hedge Funds' Jan Gains Highest Since Feb 2000

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February 20, 2006

Hedge Funds' Jan Gains Highest Since Feb 2000

The average return of Europe-based hedge funds increased to its highest level in say about six years in January 2006, according to trade publication EuroHedge. The EuroHedge Composite Index increased 2.42 percent in January 2006. This was reportedly the biggest month-on-month gain ever since February 2000, the peak of the dotcom boom in equity markets, and coincided with further gains in global stock markets. The month of January was also the third consecutive month of gains, with the index gaining 1.48 percent in December 2005 and 1.28 percent in November 2005. Reuters reports:

Over the course of 2005, the EuroHedge Composite Index rose 8.86 percent. That was in spite of a 1.17 percent fall in October -- the worst month for hedge fund performance since August 1998 -- which coincided with a correction in equity markets. Hedge funds that trade global equities were the top performers in January, with returns of 4.83 percent, measured in dollars. They were also the best performers over the whole of 2005, with returns of 15.71 percent. The worst performers in January, and the only category to deliver negative returns, were currency funds, which fell 0.32 percent. They made just 2.82 percent over the whole of 2005.

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February 20, 2006 in Research | Permalink