Asset owners' direct investments in hedge funds totaled $1.7 billion last year, down from 2021's $5.9 billion, according to data collected by Pensions & Investments. There has been $70 million in hiring activity this year.
Hedge fund hirings slowed, but performance showed improvement
Looking at the four broad HFRI indexes, all had positive returns in January. The HFRI Equity Hedge Total index led the way with a 4.2% return after losing 10.1% in 2022.
Diving deeper into equity hedge strategies, the HFRI Equity Hedge Fundamental Value and HFRI Equity Hedge Multi-Strategy indexes had the best monthly performance (excluding individual sector subindexes), returning 5.1% and 5%, respectively. The HFRI Equity Hedge Fundamental Growth index wasn't too far behind with a 4.7% return.
The HFRI Equity Hedge Equity Market Neutral index lost 0.1% in January.
Fundamental growth, fundamental value, multistrategy, and quantitative directional had negative returns in 2022. The equity market neutral strategy returned 1.2%.