Hennessee Hedge Fund Index advanced +0.80% in January

HedgeCo News - The Hennessee Hedge Fund Index advanced +0.80% in January (+0.80% YTD), while the S&P 500 advanced +2.26% (+2.26% YTD), the Dow Jones Industrial Average increased +2.72% (+2.72% YTD), and the NASDAQ Composite Index climbed +1.78% (+1.78% YTD). Bonds advanced, as the Barclays Aggregate Bond Index increased +0.12% (+0.12% YTD) and the Barclays High Yield Credit Bond Index advanced +2.21% (+2.21% YTD).

“Hedge funds had a decent start to the year as the environment for stock picking improved. Some managers struggled to produce profits as short portfolios detracted from performance,” Charles Gradante , co-founder of Hennessee Group, said. “The general consensus among hedge fund managers is that the economy is improving and markets should continue to advance in the short term. That said, managers are aware of several key macro risks, such as the European Sovereign debt crisis, emerging market inflation, and fiscal imbalances in the U.S. , that have the potential to cause volatility throughout the year.”