Hedge Funds Finish 2006 with Best Performance 3 Years, But Fall Short of S&P
|Hedge funds returned 13% globally in 2006, compared with a 15.8% increase (including dividends) by the S&P 500 Index, according to to Hedge Fund Research report today. It was the biggest gain for hedge funds since the 19.6% gain in 2003.|
Hedge funds returned an average 1.6% globally in December, led by gains in emerging markets, according to Hedge Fund Research, reports Bloomberg.
Other Highlights from HFR:
- Emerging-market managers were among the most successful in 2006, returning 25.1%.
- Macro funds, which bet on broad economic trends finished with an 8.8% gain.
- Funds focused on the boom in mergers and acquisitions had gains of 15.4%.
- Funds that sell securities short fell 2% last year, the only 12-month decrease of a single-strategy fund tracked by HFR.
- Equity hedge funds returned 11.7%.
HFRI Monthly Performance Indices (%)
|HFRI Fund Weighted Composite Index||1.56||12.99|
|HFRI Emerging Markets (Total)||4.08||25.13|
|HFRI Merger Arbitrage Index||1.51||16.13|
|HFRI Sector (Total)||0.62||15.71|
|HFRI Event-Driven Index||1.77||15.42|
|HFRI Distressed Securities Index||1.22||15.26|
|HFRI Relative Value Arbitrage Index||1.79||12.59|
|HFRI Convertible Arbitrage Index||1.35||12.25|
|HFRI Equity Hedge Index||1.46||11.74|
|HFRI Fund of Funds Composite Index||1.68||10.33|
|HFRI Fixed Income (Total)||0.81||8.78|
|HFRI Macro Index||1.81||8.75|
|HFRI Equity Market Neutral Index||1.15||7.86|