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After November’s promising uptick ($3.8bn), hedge fund industry AuM returned to the previous seven months’ record and was down $5.6bn in December, which took the YTD decline to $198bn. However, overall performance in December was impressive, up $8.5bn, with the net reduction driven by outflows of $14.1bn.
Hedge funds continued to perform well in December despite the global economic turmoil, with the Eurekahedge Hedge Fund Index only dipping 0.3% against a challenging market backdrop that saw the S&P 500 down 5.9%. Following the flat performance in December, global hedge funds held their 2022 losses to 3.8%. By comparison, the S&P 500 lost 19.4%, exemplifying the resilience that hedge funds displayed in navigating the market turmoil in 2022.