Hedge Funds Open 2010 on Down Note

| About: Financial Select (XLF)

Hedge funds shed 0.42% in January, according to the Lyxor Hedge Fund Index.

Long-term commodity trading advisors were the biggest culprits for the drop, losing 3.12% in the first month of 2010. Short-term CTAs didn’t do much better, dropping 1.93% last month.

Global macro funds lost 1.27% and long-bias equity funds 0.65%.

Not every strategy lost ground last month. Long/short credit arbitrage funds added 2.1%, short-bias equity funds rose 1.55% and equity market-neutral funds 1.51%.

Lyxor, the industry’s most pessimistic index, rose only 5.15% last year; most indices rose nearly, or in excess of, 20%.

Disclosure: No positions

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