The exceptional performance by hedge funds in 2006 was largely driven by emerging markets, according to the Credit Suisse Tremont Hedge Fund Index.
Emerging markets was the best performing sector up 20.49 percent. The result was stronger than expected because of a favourable market environment, says Oliver Schupp, president of the Credit Suisse Tremont Index.
“Record highs in global markets and mergers and acquisition activity, along with a stronger than expected earnings season, a pause in the continual increasing of interest rates by the Federal Reserve, high energy prices and volatility fluctuations were positive contributors,” says Schupp.