Early estimates indicate the Dow Jones Credit Suisse Hedge Fund Index surged ahead in December, posting positive performance of 3.01% for the month.
According to the estimate, which is based on 88 per cent of assets in the index reporting, nine out of ten sectors posted positive performance for the month and the industry is expected to finish up 11.07% for the year.
The Event Driven sector posted the strongest performance in December due primarily to increased opportunities in the special situations arena. The largest gains were seen in the Distressed and Multi-Strategy sub-indices which were up 2.34% and 5.27% respectively.
Global Macro funds were also among the top performers for the month finishing up 2.75%. Managers found profitability in FX trades, where many shorted the USD against other emerging markets currencies. Managers also added alpha via commodities with long precious metal positions.
Managed Futures funds posted positive performance of 5.50%, helping the sector to recoup November losses. Performance was largely driven by gains from short term models, which were able to capture strong momentum in both equities and commodities.
Final December performance is due to be published on January 18.
