Opalesque Industry Update: The Dow Jones Credit Suisse Hedge Fund Index team today released its 2012 Hedge Fund Market Review. The report includes statistics on hedge fund performance and asset flows in 2012. Some key findings from the report include:
Hedge funds, as measured by the Dow Jones Credit Suisse Hedge Fund Index, finished December up 1.48%. Overall performance for 2012 was 7.67%;
Though the industry saw estimated outflows of approximately $31B in 2012, overall assets remained relatively stable at $1.8T when factoring in performance gains;
The Fixed Income Arbitrage and Global Macro sectors experienced the largest asset inflows on a percentage basis in 2012, with inflows of 16.0% and 3.6%, respectively;
A greater number of hedge fund managers posted positive performance in 2012, approximately 75% compared with about 35% in 2011;
On an industry-wide basis, a larger percentage of asset inflows went to funds with monthly or better liquidity, suggesting greater investor demand for more liquidity; and
Overall, hedge funds, as represented by the Dow Jones Credit Suisse Hedge Fund Index, continued to provide positive risk-adjusted returns relative to other strategies.