Hedge Funds Finish 2003 On A Positive Note

by Carla Johnson, Investors Offshore.com

21 January 2004

Most hedge funds reported positive results for December 2003 in what was generally a good year for the alternative investment sector, according to the monthly newsletter published by CogentHedge.

Of the 61% of registered alternative investment funds reporting their December performance, some 85% produced a positive return, while nearly 95% of funds of funds reported positive results, with the average gaining +1.42%. The average monthly performance for all single-manager funds was +2.27% (or +1.89% if futures strategies are excluded.)

Broadly, most hedge fund strategies recorded a positive return last month with the exception of options strategies, pairs trading, statistical arbitrage and short selling. The top performing strategies are as follows: Emerging markets equity strategies (6.83%); Managed futures (5.12%); Strategic block/activist investing (3.96%); Currency trading strategies (3.65%); and Macro strategies (3.59%). The greatest decline for the month was for the group of pairs trading strategies, with an average loss of -0.79%.

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