Hedge Fund Performance Commentary – 2008 in Review
Eurekahedge
January 2009
December 2008 Performance
December has traditionally been a positive month for hedge funds, and 2008 was no different; the Eurekahedge Hedge Fund Index returned a healthy 1%1, positive for the first time since May 2008. The month’s gains came despite a continued decline in the global economic outlook in December and negative repercussions from the Madoff scandal. The latter meant that redemption pressures continued to be an issue despite improved performance and the fact that more funds locked-in their investors during the month.
In terms of strategy allocations, directional macro (1.7%) and CTA/managed futures (1.4%), and to a lesser extent, equity long/short and multi-strategy (up 1% each) funds finished the month strongly higher, with trend-following proving to be the main driver of the month’s gains. Returns from directional equity plays (1.1%) were reflective of underlying equity prices, which remained volatile but ended the month in positive territory.
