Hedge funds started off 2013 in a positive fashion, posting excellent returns on the back of rallying markets globally. The Eurekahedge Hedge Fund Index was up 2.32%1 during the month, the strongest January return since 2006. Most underlying markets witnessed rallies as the MSCI World Index2 gained 4.66%.
Total assets under management (AUM) increased by US$17.8 billion in January, bringing the size of the industry to US$1.79 trillion. Hedge funds posted performance-based gains of US$13.9 billion as all strategies finished the month in the black. The industry also witnessed net positive asset flows of US$3.9 billion during the month.