New York (HedgeCo.net) – The Dow Jones Credit Suisse Hedge Fund Index team has released its 2010 Hedge Fund Industry Review. The report examines the drivers of hedge fund performance in 2010 and explores some of the noteworthy trends that have characterized the markets in recent months.
Some key conclusions from the report include:
- Hedge funds, as measured by the Dow Jones Credit Suisse Hedge Fund Index, were up 10.95% for 2010 after posting positive performance for seven out of 12 months
- On an asset-weighted basis, an estimated 81% of funds have surpassed previous high water marks as of December 31, 2010
- The industry saw an estimated USD $8.5 billion in inflows for the fourth quarter, bringing overall inflows to $22.6 billion for the year. This represents the largest annual inflows into the space since 2007
- The largest inflows in 2010 were seen in the Global Macro and Event Driven Sectors, up $16.8 billion and $13.9 billion respectively, while the largest outflows were seen in the Multi-Strategy sector which lost $16.9 billion
- Including performance gains, current hedge fund industry assets under management (AUM) grew to $1.7 trillion as of December 31, 2010, up from $1.5 trillion on December 31, 2009
- Research of returns from January 1996 through December 2010, indicates that smaller hedge funds (less than $100M AUM), have historically outperformed larger hedge funds (greater than $500M AUM) by 3.95% annually
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