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Hedge funds end challenging 2021 with 9.31% gain led by North American hedge funds

Thursday, January 27, 2022
Opalesque Industry Update - Hedge fund managers ended the month of December up 0.85% on an equal-weighted basis, and up 1.15% on an asset-weighted basis, Eurekahedge said.

Market risk sentiment improved over the second half of December after research revealed that the Omicron variant leads to milder disease compared to previous variants and that the efficacy of existing vaccines against severe disease remains high, especially after a third dose is administered.

In 2021, global hedge funds were up 9.31%, marking the third consecutive year that the global hedge fund industry has posted annual returns exceeding 9.00%.

Returns were mostly positive across geographic mandates in December, with Latin American hedge funds leading the group with a return of 1.65% while Asian hedge funds trailed behind their regional peers with a return of -0.01%.

Across strategies, macro hedge funds outperformed their strategic peers with a return of 1.39% in December while arbitrage hedge funds were the worst performer with a return of 0.56%.

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