Based on the January performance for the Credit Suisse Long/Short Liquid Index, long/short equity funds posted negative returns in January but outperformed global equity indices.

The LAB Long/Short Liquid Index was down 1.46 per cent for the month as managers struggled to find profitable positions amid falling equity markets.

Despite overall negative performance, long/short equity hedge funds outperformed major global equity market indices in January.

On the other hand, the Credit Suisse Global Macro Liquid Index finished the month up 1.18 per cent in January as many macro managers removed some of the risk from their books in the New Year.

Liquid Alternative Beta is a series of indices that seek to replicate the aggregate return profiles of alternative investment strategies using liquid, tradable instruments.