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Eurekahedge Hedge Fund Index +19.16% in 2009, strong performance resulted in December net inflows and positions hedge funds for Q12010 allocations

Tuesday, January 12, 2010
Opalesque Industry Updates - Hedge funds finished 2009 on a high note with healthy returns of 0.91% through December. The composite Eurekahedge Hedge Fund Index returned 19.16%1 for the year – the best performance on record since 2003 when the index gained 21%. The positive performance for the month was delivered amid increased risk appetite, which pushed global equity markets higher during the month. The MSCI World Index gained 1.69% during the month.

2009 performance of 19.16% is the best on record since 2003. Asia ex-Japan funds posted gains of 37.98% for 2009 which is the best yearly performance for all regions on record.

December is the 8th consecutive month of positive net inflows to the industry, bringing the total assets from US$1.29 trillion to US$1.48 trillion over this period.

2009 saw most strategic indices post their strongest yearly gains on record – event driven funds achieved the highest annual returns on record across all strategic mandates by posting 38.02%.

Based on the initial data received so far for December, the hedge fund industry grew by US$2 billion through December; the sector is expected to attract greater allocations through 1Q2010...Full performance indices available: Source

KB

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