Hedge funds recorded a -0.23% return in December amid volatile market conditions and trend reversals that persisted into the last month of 2011. The Eurekahedge Hedge Fund Index was down 4.15% for the year, making it the second worst yearly return on record. Hedge funds continued to outperform the MSCI World Index, which was down 0.40%  in December and 9.9% for 2011.

North American hedge funds witnessed another year of strong growth in 2011, despite a flat to slightly negative performance amid unhelpful market conditions. The Eurekahedge North American Hedge Fund Index registered a -1.13% return for the year, however the industry attracted US$55 billion in net positive asset flows from investors.

As evidenced by the draft amendment on local hedge funds and prime brokers that has recently been released for public review, Korea is on the verge of having its own homegrown hedge fund industry. Many of the overly restrictive regulations that had previously stifled the development of Korean hedge funds are set to be eliminated or eased, while other areas have been given greater clarity.

There has been much talk of the poor performance of Africa’s development and governance indicators when compared to other regions. Attention has also been focused on Africa’s poor performance in meeting the Millennium Development Goals and the inability of the region to meet its 2015 targets. Basheer Oshodi believes that the Islamic finance global growth of over 15% per annum may not make much impact in Africa if the continent is unable to solve its poverty challenges.