After weeks of preliminary results Hedge Fund Research Inc. reported hedge funds returned 1.6 percent globally in December, making 2006 the best performance year since 2003.
Led by gains in emerging markets hedge funds tracked by Hedge Fund Research saw a 13 percent return last year, compared with a 15.8 percent increase by Standard & Poor’s 500 Index. The 2003 record was due to a 19.6 percent gain in private-investment pools.
Whilst emerging-markets invested in securities in developing countries shined with a 25.1 percent return rate, macro funds finished with a gain of only 8.8 percent. Buyouts also helped funds invested in mergers and acquisitions gain 15.4 percent.