Reuters – Hedge funds that specialize in emerging markets climbed 20.49 percent in 2006, according to new data, reminding investors of the out-sized returns that made these loosely regulatedportfolios famous just a few years ago.
The average emerging market fund beat out all other individual hedge fund strategies, according to numbers published by New York-based Credit Suisse’s Credit Suisse/Tremont Hedge Fund Index and released on Tuesday.
Overall, the average hedge fund returned 13.86 percent, a smidgen more than the Standard & Poor’s 500-stock index of large stocks which rose 13.6 percent. Last week Hedge Fund Research Inc., the first company to report industry data, said the average hedge fund gained 12.99 percent.
Both hedge funds and other investments benefited from strong corporate earnings, a steady economic background, falling gasoline prices and no surprise moves by the U.S. Federal Reserve.
