Hedge Funds See Moderate Gains in December

February 1, 2005 (PLANSPONSOR.com) - December hedge funds returns were moderate, with the MSCI Hedge Fund Composite Index (Asset Weighted) posting 1.37% returns on the month.

This brought that yearly return of the index to 7.28%, according to a press release from the company. The MSCI Hedge Fund Composite Index (Equal Weighted) did not perform quite as well, posting 1.27% gains on the month and 6.55% on the year.

By process group, the MSCI Multi-Process Group Index performed the best, posting 2.14% gains on the month. On the year, specialist credit performed the best, posting 12.95% gains. For the month, directional trading performed the worst with 0.32% gains.

By asset class, the MSCI Hedge Fund Equity Index performed the best, bringing in returns of 1.64%. On the year, however, fixed income hedge funds performed the best, posting 10.19% gains.

By geography, the MSCI Emerging Markets Index performed the best on the month with 1.96% gain, as well as best on the year with 11.58% gains. The worst geographical performance in December was in the MSCI Hedge Fund Japan Index, which saw paltry 0.96% gains. On the year,Europe performed the worst however.

The MSCI Hedge Invest Index of investable hedge funds rose 0.74% in December and 3.23% on the year.