Hedge funds delivered positive performance in December, despite mid-month trend reversals in various sectors due to increased risk appetite. The benchmark Eurekahedge Hedge Fund index was up 1.46%1 while the MSCI World Index gained 2.22%2 over the month. Total assets under management were up by US$1.4 billion during December – the sector added performance-based gains of US$9.9 billion while witnessing net negative asset flows of US$8.5 billion. The total size of the industry now stands at US$1.77 trillion.
Highlights of hedge fund performance and asset flows for the month are as follows: