Hedge funds held up better than stocks in January, falling an average of 0.1 percent as global equities slumped amid a selloff in emerging-market currencies and signs of weakness in China.
Bridgewater Associates LP’s Ray Dalio gained 1.1 percent as of Jan. 28 at his Pure Alpha II fund, according to a person familiar with the matter. Global stocks declined 4 percent for the full month, including reinvested dividends.
“Across most strategies, the last two weeks of the month and the first few trading days of February were challenging,” Anthony Lawler, portfolio manager at $120 billion Swiss asset manager GAM, wrote in a report issued yesterday. Macro and long-short funds were among categories that declined.
After trailing the Standard & Poor’s 500 Index for the fifth straight year in 2013 as U.S. markets rallied to record levels, hedge funds started 2014 with stronger relative performance. Multistrategy funds rose 1.1 percent, according to data compiled by Bloomberg. Two funds from Carlson Capital LP posted gains, a person familiar with the matter said.