Fresh data covering how different strategies in the hedge fund world fared showed that overall the multi-trillion dollar sector was hit by the virus-induced market woes, although declines were modest.

Recently released industry figures show that as a result of fears over the highly contagious coronavirus, hedge funds dipped in January and equity markets were more volatile towards the end of the month.

The HFRI Fund Weighted Composite Index® from Chicago-based Hedge Fund Research showed a 0.19 per cent slip in January, with declines in the equity hedge and event-driven strategies only partially offset by gains in the macro and relative value arbitrage strategies.

The HFRI 500 Fund Weighted Composite Index, an investable index of 500 hedge funds, fell by 0.03 per cent in January. Liquid alternative UCITS strategies also posted mixed performance for the month, HFR said.

Macro hedge funds led strategy gains for the month, as investor risk tolerance fell sharply into month-end on uncertainty associated with the contagion of the coronavirus. The HFRI Macro (Total) Index gained 0.6 per cent in January, led by the HFRI Commodity Index, which gained 1.6 per cent.