Key Takeaways
- • Hedge funds under Citco administration posted a weighted average return of 3.6% in January 2023, with most strategies recording positive performance.
- • More than three quarters of hedge funds posted positive returns in January, according to fund administrator Citco's monthly update.
- • Event-driven strategies led performance, followed by multi-strategy, equities and fixed income; commodities funds were the only category in negative territory at -0.3%.
- • Net inflows were recorded in every region in January: $1.3 billion for Europe, $0.9 billion for Asia and $0.1 billion for the Americas.
- • Market volatility fell in January to its lowest level since November 2021, and bigger funds outperformed smaller ones.
Summary
Hedge funds began 2023 on a positive note, with over three quarters of funds posting positive returns in January, according to data from fund administrator Citco. In its monthly hedge fund update, Citco reported that funds under its administration achieved a weighted average return of 3.6%, and most strategies saw positive performance.
By strategy, event-driven hedge funds delivered the strongest results, followed by multi-strategy, equities and fixed income funds. All assets-under-administration categories also posted positive returns, with larger funds outperforming smaller ones. Commodities funds were the exception, registering a negative return of -0.3% in the first month of the year.
Flows were positive across all regions in January. Citco data showed net inflows of $1.3 billion into European funds, $0.9 billion into Asian funds and $0.1 billion into funds in the Americas.
Citco also noted that market volatility, which had been broadly steady for much of the second half of 2022, fell in January to its lowest level since November 2021. Lower volatility was a backdrop to the month's performance across most strategies.
By strategy, event-driven hedge funds delivered the strongest results, followed by multi-strategy, equities and fixed income funds. All assets-under-administration categories also posted positive returns, with larger funds outperforming smaller ones. Commodities funds were the exception, registering a negative return of -0.3% in the first month of the year.
Flows were positive across all regions in January. Citco data showed net inflows of $1.3 billion into European funds, $0.9 billion into Asian funds and $0.1 billion into funds in the Americas.
Citco also noted that market volatility, which had been broadly steady for much of the second half of 2022, fell in January to its lowest level since November 2021. Lower volatility was a backdrop to the month's performance across most strategies.
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