Hedge funds accumulated another $5.9 billion in assets last month, total AUM of hedge funds now stands at $1.77 trillion according to Eurekahedge. In North America, the hedging business has grown significantly with an increase of $56 billion in this year alone. The Eurekahedge Hedge Fund Index has gained 4.37 percent YTD, while the Fund of Funds Index rose 2.8 percent.
By strategies the best performing indexes were, Distressed Debt Hedge Fund Index that gained 10.51 percent through the year, the Fixed Income Hedge Fund Index rose 9.19 percent and the Relative Value Hedge Fund Index which is up by 9.09 percent. The worst performing strategy was the CTA/Managed Futures Hedge Fund Index that lost 1.14 percent in the year. Strategies like, Arbitrage, Event Driven, Equity Long/ Short and Multi Strategy, were up in the range of 5-6 percent.
In November, the maximum gain of 0.77 percent was added to the Fixed Income index while Event Driven Index rose 0.73 percent. The CTA/Managed Futures lost 0.14 percent while Macro Hegde Fund Index was down 0.05 percent in last month.
By regions, best performing index was EurekaHedge Latin American Hedge Fund Index that returned 8.45 percent through the year. The annualized average return of the Latin American Index has been 15.6 percent since inception while Brazil investing funds gained 9 percent YTD. The Asian ex-Japan Index detracted by 12.54 percent in 2011 but has gone up 7.86 percent YTD. The Emerging Markets Hedge Fund Index has also gained 7 percent after an underperformance of -8 percent in last year. Eurekahedge’s North American and European Hegde Fund Index posted a +5 percent return for the year. The Eastern Europe and Russian index is down -0.62 percent YTD and will probably finish the year better than the -20 percent detraction that it saw in 2011. The Japan Index is up 1.98 percent.
The Asia only indices, Greater China Index is down -5 percent while India Hedge Fund Index lost 3.2 percent through the year. The Islamic Fund Index gained 5.38 percent in this year.
Eurekahedge’s database follows 12,815 hedge funds and 4,509 fund of hedge funds.