(Reuters) – Macro hedge funds were profitable in January according to data provider HFR. This is in contrast with the general trend of industry losses due to market volatility triggered both by high inflation, and a sharp rise in U.S. expectations regarding interest rates.

The HFRI Macro (Total) Index climbed 0.85% during the month. This was led by a 5.52% jump in the Commodity Index. This was the most positive start to the year since 2016 for macro funds and was an uncommon light in the darkness.

HFR stated that the wider HFRI Composite Index fell 1.73% while the Equity Hedge Index declined 3.43%. It was the worst January decrease since 2016. The Technology Index, which fell 7.86%, was the largest loser in the equity sector.

The Federal Reserve gave the green light to an earlier start for its tightening policy cycle. Global markets were wildly volatile in January, after data showed that U.S. prices hit nearly 40-year highs of 7%.

In January, the total return for the dropped 5.18% and the Bank of America index (NYSE: U.S Treasury) fell 1.9%.

A note by Goldman Sachs (NYSE 🙂 that Reuters reviewed shows that equities hedge funds suffered a loss of 6.22% in January while large funds such as Tiger Global Management or Melvin Capital Management experienced double-digit losses.

HFR President Kenneth Heinz said that hedge funds’ future focus will be on the following months: inflation and interest rate sensitivities, commodities, mergers and acquisition activity and select, hedged equity exposures.

Heinz stated that funds tactically prepared for the dynamic geopolitical and macroeconomic risks and opportunities will likely lead industry performance in volatile years 2022 and beyond.