HONG KONG Feb 16 Hedge funds posted positive
returns for a seventh consecutive month in January, with
Japan-focussed managers leading gainers, Singapore-based fund
tracker Eurekahedge said on Wednesday.
Hedge funds globally rose 0.06 percent, while Japan-focussed
funds gained 1.26 percent, making it the best performing hedge
fund region in the world, comprehensively outperforming the 0.1
percent gain of the benchmark Nikkei 225 Index .N225 in
Asset flows into the industry were positive for a seventh
consecutive month, with investors allocating a net $3.39 billion,
helping the industry grow to $1.68 trillion.
"Although January is usually a slow month for asset flows,
the excellent returns posted by hedge funds in the last quarter
of 2010 and improving macro-economic fundamentals have led to
strong interest among investors to allocate to hedge funds," the
firm said in a statement.
European managers led asset growth with net capital inflows
at $3.06 billion. Emerging market hedge funds saw smaller
outflows on the back of profit-taking, Eurekahedge said.
(Reporting by Nishant Kumar; Editing by Chris Lewis)