Hedge funds up in January

hedge-funds/cent/chief-executive/financial-crisis/

16 February 2009
| By Levy. Benjamin |

The performance of hedge funds and absolute return funds appears to be recovering in 2009, with results from nearly half of all Australian Fund Monitors (AFM) index of funds showing an average return of 0.65 per cent for January, according to data released by AFM. Hedge fund returns averaged minus 17.7 per cent in 2008.

Managed futures, global macro, commodity and currency funds gave even better returns of 1.51 per cent on average.

The ASX 200 index fell by more than 5 per cent in January.

Chris Gosselin, the chief executive of AFM, said that the hedge fund industry was adapting to financial crisis conditions, which was difficult in last year’s markets.

This was the second consecutive positive return for hedge funds, with the industry recording returns of about 0.5 per cent in December.

Hedge funds are about protecting capital and positive returns, Gosselin said, so he was happy that they accomplished that in January.

He said it was important to put things in perspective and to remember that hedge fund performance last year was against the backdrop of a more than 40 per cent loss in the share market.

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