With December’s performance eclipsing November’s 1.08% ( CSFB/Tremont Hedge Fund Index Enjoys 1.08% November Advance ), the Hedge Fund Index’s return was boosted by comparatively strong December showings by Managed Futures (5.42%, 14.13% year to date) and Emerging Markets (3.56%, 28.75% year to date). Since January 1, the composite is up 15.44%, according to a CSFB/Tremont news release.
Index components were nearly unanimously on the positive side, with November’s lone decline noted in the Dedicated Short Bias category, which lost 3.98% as US stock indices continued their upward rise. Other December winners included:
- Long/Short Equity – 2.40%, 17.27 year to date)
- Multi-Strategy – 2.32%, 15.04%
- Global Macro – 1.86%, 17.99%
Performance for the CSFB/Tremont Hedge Fund Index and the ten style-based sector indices is calculated monthly. December, November and year-to-date returns for all categories are listed at www.hedgeindex.com .
Similar to the composite index, leading the gainers in the Investable Index was Managed Futures, up 4.86% for December. Following November’s 0.62% return, the Investable index was up 1.26% in December and is 11.24% higher year-to-date.
Also a mirror image of the composite was November’s lone negative performance among the Investable index’s components, a negative 3.87% turned in by the Dedicated Short Bias component, from November’s -1.95%. However, the remaining components were all positive, with December gains including:
- Emerging Markets – 2.41%, 31.27% year to date
- Global Macro – 1.71%, 15.50% year to date
The CSFB/Tremont Investable Hedge Fund Index is designed to give investors broad exposure to hedge funds as an asset class. At launch, on August 1, 2003, the aggregate assets under management for the 60 index constituents totaled approximately $55 billion (See CSFB/Tremont Introduces New Hedge Index ).