Hedge funds, as measured by the Dow Jones Credit Suisse Hedge Fund Index, are up 5.98 per cent year-to-date as of 30 September.
The positive performance has catapulted the industry past its previous high water mark, with the index officially regaining all losses from the drawdown which occurred during the recent financial crisis.
In addition, assets have returned to the space with inflows of over USD14bn, the largest since the first quarter of 2008.
The Dow Jones Credit Suisse Q3 2010 Hedge Fund Industry Review shows that performance among the ten index sectors was largely positive with eight out of the ten sectors in posting positive performance for the first three quarters of the year.
Top performers year to date include fixed income arbitrage (+9.8 per cent), global macro (+9.3 per cent) and emerging markets (+7.7 per cent).
Including performance gains, estimated industry assets under management currently remain at USD1.6trn.