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Canadian Hedge Funds Outperformed Average

January 21, 2010

For top-notch hedge fund returns, look no farther than our neighbor to the north.

While the average hedge fund rose approximately 20% last year, the average Canadian hedge fund did a good deal better: Up 28.62%, according to the Scotia Capital Canadian Hedge Fund Performance Index. It was the best year for Canadian hedge funds in the six that Scotia Capital has been tracking hedge funds.

“The year was characterized by an overall return of investor risk appetite, as central banks’ efforts to stimulate economic growth resulted in economic stabilization, and market participants ultimately refocused on higher risk securities as interest rates were low,” the firm said.

While Canadian hedge funds “significantly” outperformed broader hedge fund returns, they trailed Canadian stocks: The S&P/TSX composite index rose 30.7% in 2009.

http://www.finalternatives.com/node/11011