These are the best performing hedge funds that report to a single platform in January

Global hedge funds, as represented by the HFM Global Composite Index, were down 1.2% month-over-month and year-over-year, according to data from With Intelligence. However, they did better than the US stock market. The S&P 500 was down 5.3% month over month and 1.4% year over year.

With Intelligence noted that investors became more risk averse in January due to a contraction by the Federal Reserve and the escalation of tensions between the United States and Russia over Ukraine. The company has listed the top performing funds that report to its platform.

Best and worst performing strategies

According to With Intelligence, the best performing strategy in January was managed futures, which gained 0.6% and was the only major strategy to be in the green. The worst performing strategy was long/short equity, which was down 3% month-on-month, with event funds only slightly better with a 2.9% decline. Bond and credit funds fell 0.4% in January, followed by macro and multi-strategy funds at -0.7% and relative value and arbitrage at -0.8%.

With Intelligence reports that January was the second consecutive month in the green for managed futures hedge funds, the first time this has happened since May. Relative value and arbitrage funds ended a five-month streak of positive returns, turning negative in January. The strategy had posted positive returns since August.

Over the past six months, multi-strategy, macro and long/short stocks have moved in lockstep with the HFM Global Composite.

Funds with more than $1 billion in assets under management did slightly better than smaller hedge funds, returning -0.8% for January, compared to -1.5% for smaller funds. Funds of funds also had a tough January, falling 1.4% in an economic environment that made fund selection difficult.

Style Spreads

Bond and credit funds have had the narrowest spread of any hedge fund strategy over the past 12 months. About 80% of funds using this strategy have generated returns between 13% and -3% over the past year.

Long/short equity funds had the widest spread over the past 12 months, with around 80% of these funds posting returns between 31% and -13%. Managed Futures funds had the second widest spread, with around 80% of them posting returns between 24% and -8%.

The best performing hedge fund across all strategies returned 32.1% in January and 290.3% over the past 12 months.

The best performing hedge funds

With Intelligence has listed the top performing hedge funds for January. Odey Asset Management performed exceptionally well last month, managing one of the top 10 performing funds there. Top funds in January were: e360 Power Flagship Strategy, Haidar Jupiter Fund, Odey OEI MAC Fund, Odey European, The Mulvaney Global Markets Fund, Odey Swan Fund (UCITS) Class I, Farringdon Alpha One, AQR Equity Market Neutral Fund, AIS MAAP Futures (2X-4X) Composite and Global Quantitative Program.

The flagship e360 Power strategy generated a return of 32.1% in January, while the Haidar Jupiter fund rose 30.6%, followed by the return of 23.9% from the OEI MAC fund of Odey.

The top five funds with over $1 billion in assets under management were Haidar Jupiter Fund, PIMCO CommoditiesPLUS Strategy Fund, PIMCO CommodityRealReturn Strategy Fund, AQR Managed Futures Strategy Fund Class I and Aspect Diversified Fund. The gap between the Haidar Jupiter Fund and the second-best fund with over $1 billion was significant. PIMCO’s CommoditiesPLUS strategy fund returned 9.4%.

The best performing long/short equity hedge funds

The wide performance gap for long/short equity funds is evidenced by the large gap between the second and third best funds in this category and the fact that all of the top long/short funds were in the green. Odey manages the two best long/short equity funds for January, posting a return of 23.9% for its OEI MAC fund and 23.5% for its European fund.

AQR runs the third and fourth best long/short equity funds, but lags significantly behind Odey’s funds. AWR’s Equity Market Neutral Fund returned 11.1% in January, followed by its Long-Short Equity Fund’s return of 9.5% for the month.

However, long/short stocks bucked the general trend of billion-dollar hedge funds outperforming their smaller counterparts. The top funds with over $1 billion in assets were the Greenvale Capital (Cayman) Master Fund with its 5% return, followed by the Platinum Asia Fund’s 2.5% return and the 2.1% return from Lakewood Capital Partners for January.