Hedge funds gain 19% in 2009
Hedge funds finished 2009 on a high note with healthy returns of 0.91%through December. The composite Eurekahedge Hedge Fund Indexreturned 19.16%
for the year – the best performance on record since2003 when the index gained 21%. The positive performance for themonth was delivered amid increased risk appetite, which pushed globalequity markets higher during the month. The MSCI World Index gained1.69% during the month.
2009 performance of 19.16% is the best on record since 2003.Asia ex-Japan funds posted gains of 37.98% for 2009 which isthe best yearly performance for all regions on record.
December is the 8th consecutive month of positive net inflows tothe industry, bringing the total assets from US$1.29 trillion toUS$1.48 trillion over this period.
2009 saw most strategic indices post their strongest yearly gainson record – event driven funds achieved the highest annualreturns on record across all strategic mandates by posting38.02%.
Based on the initial data received so far for December, the hedgefund industry grew by US$2 billion through December; the sectoris expected to attract greater allocations through 1Q2010.
2009 YTDReturns 2008Returns Eurekahedge Hedge Fund Index 0.91 19.16-11.06Eurekahedge Fund of Funds Index 0.48 9.58-19.77Eurekahedge Long-Only AbsoluteReturn Fund Index3.23 47.15-42.49Eurekahedge Islamic Fund Index 0.81 22.15-28.48
December was a favourable month for the global hedge fund sector,spreading the holiday cheer across the board as all regional mandatesposted healthy returns. Asia ex-Japan managers outperformed theircounterparts in other regions while also standing out annually. TheEurekahedge Asia ex-Japan Hedge Fund Index gained 2.16% in