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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n