Preliminary hedge fund index performance for December 2010
Key highlights for the month:
Early View: Dow Jones Credit Suisse Hedge Fund Index Estimated Up 3.01% in December
- Hedge Funds bounced back after muted performance in November, as the Dow Jones Credit Suisse Hedge Fund index rose an estimated 3.01%. Nine out of ten sectors posted positive performance for the month. The industry is expected to finish up 11.07% for the year.
- The Event Driven sector posted the strong 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.
|Dow Jones Credit Suisse Hedge Fund Index||3.01%||-0.18%||11.07%|
|Dedicated Short Bias||-5.94%||-2.36%||-22.52%|
|Equity Market Neutral||2.22%||-2.51%||-0.37%|
|Event Driven Multi-Strategy||5.27%||0.04%||14.90%|
|Fixed Income Arbitrage||0.63%||0.74%||12.50%|
|Dow Jones Global Index||7.38%||-2.16%||11.89%|
|Barclays Capital Aggregate Bond Index||1.31%||-3.81%||5.54%|
|DJ-UBS Total Return Commodities Index||10.69%||-0.35%||16.83%|