Saturday, 22 October 2016
Last updated 19 hours ago
Jan 17 2014 | 4:08am ET
Hedge funds returned 11.21% in 2013, according to BarclayHedge.
The Barclay Hedge Fund Index jumped into double-digits for the year with a 1.23% return in December. But that paled in comparison to the Standard & Poor's 500 Index, which hit a record high on the final trading day of 2013 and enjoyed its best year since 1997.
"For traders on the short side of the market, swimming against a strong current can be treacherous," BarclayHedge founder Sol Waksman said. And, indeed, for short-bias funds, treacherous was an understatement: They fell an average of 27.15% last year, breaking their record on the red side, set the prior year.
The best strategy of the year was healthcare and biotechnology, which rode the market rally to a 28.98% return (1.91% in December). Pacific Rim equities rose 23.14% (2.05%), equity long-bias 21.52% (1.98%) and distressed securities 16.62% (0.97%).
Funds of hedge funds rose just 8.46% on the year after rising 1.08% in December, according to BarclayHedge.