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Edhec: Conv. Arb., Emerging Markets Skyrocket In ‘09

January 21, 2010

Amidst a very good year for hedge funds, convertible arbitrage funds stood out in 2009.

The strategy rose 46.9% last year, according to Edhec’s alternative indices, but was just one of many to post double-digit returns. In fact, nine of the French business school’s 12 indices posted such returns.

Emerging markets funds also soared in 2009, returning 37.9%, as did distressed securities funds, which returned 30.9%. Event-driven funds returned 26%, followed by fixed-income arbitrage funds, which added 24.4%, and relative value funds, which rose 21.2%. Long/short equity funds returned 20.2%.

Global macro funds were up 10.3% on the year, and merger arbitrage funds 10%.

Just two of the dozen Edhec indices were in the red last year. Commodity trading advisors ended 2009 down 2.1%, after shedding 2.75% in December. Short-sellers took a beating during a year when the markets rallied, dropping 20.5%.

Funds of hedge funds rose 10.7%.

http://www.finalternatives.com/node/11017