(Reuters) – Hedge funds bounced back in December to end a challenging year on a strong note and deliver broad-based annual returns of 10.3%, the third best performance since 2009, industry figures showed on Friday.
HRF’s benchmark HFRI Fund Weighted Composite Index rose 1.28% in December, following a steep 2% fall in November. The annual gain of 10.3% was slightly lower than the previous year’s 11.83% rise.
The HFRI Equity Hedge Index rose 11.96% last year, also lifted by a 1.85% rebound in December. But the annual gain was weaker than previous year’s 17.89% increase, and fell even further short of the S&P 500 index‘s rise of 26.89%.
Cryptocurrencies were the biggest winner last year. HFR’s Cryptocurrency Index jumped 215%, even better than the 193% returns delivered in 2020, HFR said.
HFR’s Macro Index rose 7.52%, its best performance since 2010, in large part led by a 23.57% surge in the Commodity Index.
The hedge fund industry data provider also said that total hedge fund assets in 2021 topped $4 trillion for the first time.