||Eurekahedge North American Hedge Fund Index
|Eurekahedge European Hedge Fund Index
|Eurekahedge Eastern Europe & Russia Hedge Fund Index
|Eurekahedge Japan Hedge Fund Index
|Eurekahedge Emerging Markets Hedge Fund Index
|Eurekahedge Asia ex-Japan Hedge Fund Index
|Eurekahedge Latin American Hedge Fund Index
Taking the cue from performance end-December, markets continued their upward trajectory through January. Markets started trending after US leaders reached an agreement to avert the 'fiscal cliff' and were further supported by positive macro-economic data. Concerns of a global slowdown waned in the wake of upbeat news from Europe, the US and China while corporate earnings added greater impetus to the rallies.
Hedge funds across all regions posted positive returns for the month with Emerging Europe and Asian hedge funds leading the way. The Eurekahedge Eastern Europe & Russia Hedge Fund Index was up 7.67%, with funds that had exposure to the power and utilities sectors posting double-digit gains. These returns point to substantial outperformance as the RTS Stock Index gained 5.99% while the MSCI Eastern Europe Index was up 2.95%.
Asia ex-Japan funds also outperformed the broad Asian market indices; gaining 5.03% during the month while the MSCI Asia Pacific ex-Japan Index was up 3.02%. Top performing funds reported gains from the rallying equities, the power sector and healthy IPO activity in the region. Exposure to China was also profitable for most Asian managers – 4 out of the top 10 performing funds for January employed a Greater China regional mandate.