Long/short equity, event-driven hedge funds lead in January

The Dow Jones Credit Suisse Core Hedge Fund index rose 1.61% in January, after posting a return of 3.38% in 2012. Long/short equity and event-driven funds led in January with returns of 2.14% and 2.05%, respectively. Long/short equity funds, which typically have net long positions, and on average have market betas around 0.5, benefited from gains in worldwide equity markets. The Russell 3000 index rose 5.49%, and the MSCI ACWI Investible Market ex U.S. index was up 4.1%.