Hedge funds up in December to conclude a strong year
Hedge funds advanced in December to conclude a strong year dominated by uncertainty and high volatility, as managers navigated the dual challenges of increasing interest rates and inflation, as well as the impacts of the second year of the global coronavirus pandemic. The investable HFRI 500 Fund Weighted Composite Index gained +0.9 per cent in December, reversing the prior month’s decline, while the HFRI Fund Weighted Composite Index advanced +1.3 per cent, according to data released today by HFR. For the full year 2021, the HFRI FWC gained +10.3, narrowly trailing the prior year’s gain of +11.8 per cent but marking the third-highest calendar year performance since 2009. Funds investing in cryptocurrencies soared again to lead all hedge funds in 2021, with the HFR Cryptocurrency Index surging +215 per cent, topping the 2020 return of +193 per cent.