Hedge funds were up 1.22 per cent in December, according to the Barclay Hedge Fund Index compiled by BarclayHedge.
The index ended 2016 with a gain of 6.20 per cent.
All but one of Barclay’s 17 hedge fund indices gained ground in December. The European Equities Index led the way with a 1.96 per cent gain, Global Macro gained 1.87 per cent, Distressed Securities gained 1.86 per cent, the Event Driven Index was up 1.70 per cent, and Equity Long Bias added 1.54 per cent.
“The ‘Trump bump’ in the US and positive economic news in Europe continued to drive equity prices higher in December,” says Sol Waksman (pictured), founder and president of BarclayHedge.
At the end of 2016, 13 Barclay hedge fund indices had gains for the year. Distressed Securities were up 14.39 per cent, the Event Driven Index gained 11.30 per cent, Emerging Markets were up 10.31 per cent, Merger Arbitrage gained 6.06 per cent, and Technology earned 5.86 per cent.
“Distressed securities ended the year with ten straight months of gains due to increased trading activity, as 2016 turned out to be the fifth highest year of total debt default on record,” says Waksman.
“Funds that have successfully identified mispriced distressed securities have been able to reap ample rewards.”
The European Equities Index lost 4.24 per cent in 2016, and the Healthcare and Biotechnology Index was down 2.76 per cent.
The Barclay Fund of Funds Index gained 0.83 per cent in December, and ended 2016 with a loss of 0.53 per cent.
