Morningstar 1000 Hedge Fund Index down 1.2 pct in January

January was not a strong month for hedge funds, with the Morningstar 1000 Hedge Fund Index dropping 1.2 pct, writes Hedgeweek.

The US dollar appreciated against several currencies, particularly the Euro, in reaction to fiscal difficulties in countries such as Greece, which hurt the Euro-denominated hedge funds in Morningstar's indexes.

Equity markets tumbled in January, particularly in Europe but also in the US as the federal government threatened to regulate banks more strictly. Emerging markets also fell as China tightened monetary policy.