The Hedgenordic index (NHX) made gains of 1.80% in December to finish the year solid returns of 10.12%, outperforming nearly all other major hedge fund indices in 2005, HedgeNordic reports.
Only the Barclays Hedge Fund Index produced a better performance with returns of 10.71%. While the S&P HFI was up 2.25% for the year, the CSFB Tremont HFI was up 7.61% and the Hennessee Group HFI finished the year up 8.03%.
Last year was generally a mediocre year for the industry with convertible arbitrage and managed futures funds underperforming.
The country in the Nordic region that produced the best returns in 2005 was Finland with gains of 10.32%. Sweden and Norway produced returns of 10.09% and 10.20% respectively.
Nordic equity hedge funds produced by far the healthiest returns, finishing the year with impressive gains of 12.94%.
In comparison the Barclays Equity long/short index was up 11.60% for 2005, while on the pure equities side, the MSCI World Index was up 13.73% for the year.
Another Hedgenordic sub index performing well in 2005 was the NHX Multi Process, tracking hedge funds across multiple strategies, which produced gains of 10.62%, compared to the Barclay’s Multi Strategy Index, up 6.46% for the year and the CSFB HEDG Multi Strategy Index, up 7.54% for the same period.