Hedge fund performance varied sharply by strategy and time period in 2024. The HFRI Fund Weighted Composite Index rose 0.28% in January and 2.5% in February, while the top and bottom deciles of its constituents differed by 12.81% in January. By the first quarter, the index was up 4.5%, and by the third quarter it had gained 2.8% for that quarter.
Contents
- January 2024 performance
- February and early-year momentum
- Strategy-level results
- HFRU and HFRX comparisons
- Quarterly performance and capital
- What the dispersion figures show
January 2024 performance
The broad HFRI benchmarks posted modest positive results in January. The HFRI Fund Weighted Composite Index advanced 0.28%, while the HFRI 500 FWC Index added 0.24%. About 60% of hedge funds produced positive performance during the month. These figures describe January 2024 only; they are not annualized forecasts.
The monthly average concealed a wide range of outcomes. The top decile of HFRI Fund Weighted Composite constituents gained 6.06%, while the bottom decile fell 6.75%. The resulting top-to-bottom dispersion was 12.81%. For context, the corresponding December 2023 dispersion was 16.73%.
The longer trailing comparison was wider still. For the 12 months ending in January 2024, the top decile returned 31.9% and the bottom decile returned -19.0%, producing a 50.9% top-to-bottom dispersion. This is a useful reminder that a composite index does not describe the experience of every hedge fund: the period, strategy, manager, and position in the distribution all matter.
The January figures come from [HFRI Indices January 2024 Performance Notes](HFRI Indices January 2024 Performance Notes). The supplied research preserves that source label but does not provide a direct source URL.
February and early-year momentum
February was stronger for the broad HFRI measures. The HFRI Fund Weighted Composite Index leapt 2.5%, and the HFRI 500 FWC Index added 2.6%. The composite posted a four-month return of 8.75% through February 2024.
The February distribution remained uneven. The top decile of HFRI Fund Weighted Composite constituents advanced 11.8%, while the bottom decile fell 2.9%. Top-to-bottom dispersion was 14.7%, slightly wider than the 12.81% reported for January but narrower than the 16.73% reported for December 2023.
Specialized cryptocurrency funds were a standout segment in February, gaining 31.2%. That result is a strategy-specific monthly observation, not a measure of the whole hedge fund universe. The HFRI Macro: Systematic Diversified Index surged 4.8%, while the HFRI Macro: Active Trading Index added 0.4%.
These February observations are reported in [HFRI Indices February 2024 Performance Notes](HFRI Indices February 2024 Performance Notes). The source label is retained as supplied, without implying that the legacy research was independently verified.
Strategy-level results
January performance differed materially across HFRI strategy groups. The HFRI Relative Value (Total) Index advanced 0.62%. Within that group, the HFRI RV: FI-Corporate Index gained 1.14%, and the HFRI RV: FI-Convertible Arbitrage Index gained 1.06%.
The HFRI Equity Hedge (Total) Index advanced 0.21% in January. Event-driven results were mixed: the HFRI ED: Credit Arbitrage Index jumped 2.37%, and the HFRI ED: Special Situations Index added 0.52%, while the HFRI ED: Activist Index declined 2.24%. The same activist index had gained 18.1% in 2023, so the January result should be read as a one-month movement following a separate annual result, not as a replacement for the 2023 figure.
HFRX measures also showed positive January results across the listed categories. The HFRX Absolute Return Index gained 0.42%, the HFRX Global Index advanced 0.32%, and the HFRX Macro Index returned 1.2%. The HFRX Equity Hedge Index advanced 0.66%.
The HFRI Diversity Index advanced 1.41% in January, while the HFRI Women Index added 1.33%. These are index results for the stated month and should not be interpreted as evidence that all constituent funds had identical performance.
| January 2024 index or segment | Return |
|---|---|
| HFRI Fund Weighted Composite | +0.28% |
| HFRI 500 FWC | +0.24% |
| HFRI Relative Value (Total) | +0.62% |
| HFRI Equity Hedge (Total) | +0.21% |
| HFRI ED: Credit Arbitrage | +2.37% |
| HFRI ED: Activist | -2.24% |
| HFRX Macro | +1.2% |
| HFRI Women Index | +1.33% |
The January strategy figures are from [HFRI Indices January 2024 Performance Notes](HFRI Indices January 2024 Performance Notes).
HFRU and HFRX comparisons
The HFRU series gives another view of January and February 2024 performance. In January, the HFRU Hedge Fund Composite Index posted 0.08%. The HFRU Macro Index gained 0.43%, and the HFRU Equity Hedge Index gained 0.17%. In contrast, the HFRU Relative Value Index declined 0.21%, while the HFRU Event Driven Index declined 0.68%.
The February HFRU results were generally stronger. The HFRU Hedge Fund Composite Index gained 0.76%, the HFRU Macro Index gained 1.14%, and the HFRU Equity Hedge Index gained 1.07%. The HFRU Event Driven Index gained 0.31%, while the HFRU Relative Value Index declined 0.41%.
| HFRU index | January 2024 | February 2024 |
|---|---|---|
| Hedge Fund Composite | +0.08% | +0.76% |
| Macro | +0.43% | +1.14% |
| Equity Hedge | +0.17% | +1.07% |
| Relative Value | -0.21% | -0.41% |
| Event Driven | -0.68% | +0.31% |
The HFRU results are reported in [HFRU Indices: January 2024 Performance Notes](HFRU Indices: January 2024 Performance Notes) and [HFRU Indices: February 2024 Performance Notes](HFRU Indices: February 2024 Performance Notes). The two series should be compared as separately named index families rather than treated as interchangeable measures.
Through mid-March 2024, the HFRX Global Hedge Fund Index gained 0.61%. Over the same month-to-date period, the HFRX Macro Index gained 0.80%, the HFRX Equity Hedge Index gained 0.71%, the HFRX Event Driven Index gained 0.58%, and the HFRX Relative Value Index gained 0.43%.
Those are month-to-date figures through mid-March, not full-month or quarter-end returns. They are reported in [HFRX INDICES MID-MARCH 2024 PERFORMANCE NOTES](HFRX INDICES MID-MARCH 2024 PERFORMANCE NOTES).
Quarterly performance and capital
The first-quarter figures provide a broader measurement window. In 1Q24, the HFRI Fund Weighted Composite Index advanced 4.5%, while the HFRI Asset Weighted Composite gained 5.12%. The HFRI Equity Hedge (Total) Index gained 5.2%.
The HFR Cryptocurrency Index returned 47.9% in 1Q24. That result is substantially different from the broad composites and illustrates why a performance statistic needs its strategy label and period attached. A specialized index result cannot be used as a general estimate for hedge funds overall.
Capital also grew in the HFRI Equity Hedge segment during 1Q24. Equity Hedge capital rose by nearly $70 billion and reached a record $1.25 trillion. Within the segment, HFRI Equity Hedge: Fundamental Value capital reached an estimated $706.8 billion. The word “estimated” is material: the $706.8 billion figure is an estimate rather than a directly stated count of verified assets.
The first-quarter performance and capital figures come from [HEDGE FUND CAPITAL SURGES TO NEW RECORD AS MANAGERS, ALLOCATORS POSITION FOR UNPRECEDENTED RISKS](HEDGE FUND CAPITAL SURGES TO NEW RECORD AS MANAGERS, ALLOCATORS POSITION FOR UNPRECEDENTED RISKS).
By 3Q24, the HFRI Fund Weighted Composite Index had advanced 2.8% for the quarter. The HFRI Cryptocurrency Index returned 17.0% year to date through 3Q24. The HFRI Relative Value Index, measured on an asset-weighted basis, gained 3.1% in 3Q24 and 7.2% year to date through that quarter. The HFRI Equity Hedge (Total) Index posted 3.8% in 3Q24.
These figures use different horizons: quarterly performance for some statistics and year-to-date performance for others. They should not be combined into a single ranking without preserving those measurement windows.
The third-quarter results are from [HEDGE FUND ASSETS INCREASE TO FOURTH CONSECUTIVE QUARTERLY RECORD AS ELECTION, GEOPOLITICAL RISKS SURGE](HEDGE FUND ASSETS INCREASE TO FOURTH CONSECUTIVE QUARTERLY RECORD AS ELECTION, GEOPOLITICAL RISKS SURGE).
What the dispersion figures show
The clearest evidence of uneven hedge fund performance is the spread between high- and low-performing constituents. In January 2024, the HFRI Fund Weighted Composite’s top decile gained 6.06% while its bottom decile lost 6.75%, a 12.81 percentage-point difference. In February, the corresponding top decile gained 11.8% and the bottom decile lost 2.9%, producing 14.7% dispersion.
The trailing 12-month figures ending in January were more extreme: 31.9% for the top decile versus -19.0% for the bottom decile, or 50.9% dispersion. This does not mean every top-decile fund sustained the same return throughout the year, nor that every bottom-decile fund followed the same path. It describes the reported endpoints for the stated trailing period.
For readers comparing hedge fund performance statistics, four labels are especially important: the index family, the strategy, the measurement date, and whether the return is monthly, quarterly, year to date, or trailing. The supplied HFRI, HFRX, and HFRU observations cover January through mid-March 2024, 1Q24, and 3Q24, so each statistic should remain attached to its original period and source label.