Opalesque Industry Update - A new Dow Jones Credit Suisse Hedge Fund Index (“the Index”) monthly commentary offers insight into December hedge fund performance. Some key findings from the report include:|
The Index posted its second best monthly performance of the year in December, up 2.90% for the month and 10.95% for the year. Nine-out-of-ten strategies in the index posted positive performance for the month.
Managed Futures posted the best performance for the month (+5.42%) and is up 12.22% for 2010. Performance drivers for the Managed Futures sector came primarily from trend-following managers whose models were positioned long equities and commodities.
Event Driven managers took second place in December, finishing up 3.93% for the month and 12.64% year-to-date. The Risk Arbitrage sub-sector was supported by increased mergers and acquisitions volumes, which reached their highest levels since 2007. Moreover, distressed credit managers found ample support in the healthy high yield bond and leveraged loan markets which saw record issuance activity in 2010.
Global Macro was the best performing sector for the year up 13.47%, with gains of 2.67% for December. Managers capitalized on a number of fundamental macroeconomic conditions including strength in US economic data and ongoing economic momentum in emerging markets.