The markets were generally calm for January even with the upheaval and uncertainty from the new Trump Administration. The surprise for many investors is the continued low volatility in the markets which seems inconsistent with the political uncertainty faced. While hedge funds generally did well for the month, there were some negative stand-outs, the macro and CTA strategies.
It is generally accepted that these two strategies will not do as well during calm periods, but that does mean that there should be strong under-performance during low volatility periods. These managers were hit with trade reversals from last month's trends and new positions that either did not work or stalled under the low volatility environment.