EDHEC has released a new report entitled “Hedge Fund Performance: A Vintage Year for Hedge Funds?”, the performance of each hedge fund strategy included in the EDHEC Alternative Indexes. Vronique Le Sourd, Senior Research Engineer with the EDHEC Risk and Asset Management Research Centre is the author of the report.
The report reveals that funds of hedge funds, which are often taken to give an aggregate view of the industry’s performance, yielded a solid return of 11.25 percent in 2006. This performance was very strong compared to the return of 6.8 percent in 2005, a mixed year for hedge funds, and was also better than the long-term performance of the funds of hedge funds index. The best performing strategy in 2006 was Emerging Markets, with a return of 18.85 percent, followed by Event Driven and Distressed Securities, with respective returns of 15.48 percent and 15.27 percent.