Funds of funds have started the year almost flat, up only 0.19% according to the InvestHedge Composite Index. Global multi-strategy returned 0.35% in January, echoing the cautious start to the year. Despite the equity market rally at the start of January, emerging-market funds of funds ended the month down by -0.78% due to a flight of capital to the more developed markets.
Unrest in the Middle East and fears of inflation in Brazil were among the contributors to this. While it is likely that Asia Pacific funds of funds are down -0.63% due to