Short Emerging, Long Developed Is A Hot Hedge Fund Trade: UBS

Equity hedge funds proved their worth in January with an average return of about -0.2%, outperforming equity markets during a temporary downturn that caught many investors by surprise. Investors have been putting more money into defensives since then, according to UBS’ monthly hedge fund update, reflecting the slightly less bullish mood. “Given the significant sell off in global equity markets, a surprisingly large number of equity hedge funds generated positive returns,” says the UBS report. “Short emerging markets, long developed markets has been a popular hedge fund theme for several months, and this paid dividends in January.” Hedge funds -…