2013 was the most successful year since 2010 for hedge fund performance, as the whole sector posted a 4th consecutive month of gains. Hedge funds have benefitted from the favourable environment for shareholder activism and corporate transactions, as well as high yield credit tightening, despite the US Federal Reserve’s quantitative easing programme, which produced rising yields and macro complexity.
Hedge Fund research (HFR) produced research which showed the HFRI Fund Weighted Index gaining 1.2% in December, meaning it finished the year on a 9.3% gain. This is the best annual result since 2009.
HFR described the performance as resurgent.
SOURCE: Funds Europe