Hedge funds finished 2012 on a high note as global markets rallied at the year-end and many managers were able to capture the upside on offer. The Eurekahedge Hedge Fund Index was up 1.46%1 during the month, ending the year at a healthy 6.19%. Comparatively the MSCI World Index gained 2.22%2 during the month.
Total assets under management (AUM) increased by US$1.4 billion in December, bringing the size of the industry to US$1.77 trillion. Hedge funds posted performance-based gains of US$9.94 billion in December while net asset flows were at a negative US$8.54 billion.