Hedge Funds, Industry Assets Rise In December

Jan 14 2014 | 8:04am ET

Hedge funds were up 0.99% in December, according to the Eurekahedge Hedge Fund Index, ending the year on an optimistic note.

All strategies tracked by the data provider were in the black in December, led by equity long/short funds, up 1.48%; distressed debt funds, up 1.34%; and relative value funds, up 1.33%.

For the full-year, all strategies except CTA/managed futures—down 0.35%—were in positive territory. This time, it was distressed debt funds that led, up 16.76% on the year; followed by equity long/short, up 14.87%; event-driven, up 11.40%; fixed-income, up 8.07%; arbitrage, up 6.68%; multi-strategy, up 6.34%; relative-value, up 5.70%; and macro, up 1.77%.

Regionally, Japan-focused hedge funds triumphed, adding 26.62% on the year (2.01% in December). Asia ex-Japan funds followed, adding 13.47% in 2013 (0.92% in December); then North American funds, up 10.36% on the year (1.74% in December). European hedge funds returned 8.79% in 2013 (1.04% in December), emerging markets funds returned 5.75% on the year (0.44% in December) and Latin American funds returned 1.57% on the year (0.12% in December).

The only losers were Eastern Europe and Russian funds, which were down 1.30% on the year, despite returning 2.50% in December.

The Mizuho-Eurekahedge TOP 100 Index was up 5.85% in 2013.

Industry assets hit $2.01 trillion in December, their highest recorded level since June 2008, according to the data provider.

Net asset flows for 2013 stood at US$146.1 billion while net allocations to North American managers stood at $73.6 billion.

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