Hedge funds were off to a good start in the first month of the year, Eurekahedge reports.
Hedge funds outperformed underlying markets as heavyweights shone with the Eurekahedge Billion Dollar Hedge Fund Index up 1.79% in January 2015.
Indian hedge funds were the top performers with gains of 6.8% while Eastern Europe and Russia mandated funds delivered the worst results down 2.46% in the month of January 2015.
India focused hedge funds have posted spectacular returns in 2014 against the backdrop of rising domestic equity markets, and a renewed sense of confidence in the Indian economy which is being led by Narendra Modi.
The Indian hedge fund industry delivered 38.95% return in 2014, but in the last quarter of the year, that growth rate was just 5.93%.
Indian hedge funds assets under management (AUM) are currently at a seven-year high of $3.45 billion, though roughly 36% below their 2007 peak of $5.36 billion.
The average Indian hedge fund was down 50.66% during the 2008 financial crises. Since 2009, Indian managers have posted a six-year annualised return of 10.89% and barring 2011, their AUM continues to trend upwards albeit at slower pace compared to the broader Asian hedge fund space.