Hedge funds soared more than 24% in 2009, fueled by enormous gains posted by convertible arbitrage and emerging markets funds, BarclayHedge said.
The Barclay Hedge Fund Index added 24.14% last year. By BarlcayHedge’s measure, convertible arb. funds enjoyed an average return of 53.83% on the year, easily erasing its 27.66% drop from 2008, and thensome.
Emerging markets funds also did extremely well, with Barclay’s index added 44.4%. Distressed securities funds returned 32.78%. Neither have recouped their 2008 losses of 39.47% and 31.7%, respectively.
The Barclay Fund of Funds Index was up 10.18% last year.