The Credit Suisse/Tremont Hedge Fund Index gained 1.83 per cent in December, finishing the year with a total return of 13.86 per cent. Th...

The Credit Suisse/Tremont Hedge Fund Index gained 1.83 per cent in December, finishing the year with a total return of 13.86 per cent.

The managed futures sector was the best performing sector in December, up 4.05 per cent and the emerging markets sector as the best performing sector for 2006 up 20.49 per cent, according to the index.

During last year, event driven gained 15.73 per cent, multi strategy returned 14.54 per cent, long/short equity finished the year up 14.38 per cent, and convertible arbitrage gained 14.3 per cent.

The dedicated short bias category performed the worst, showing a year-end negative return of 6.61 per cent.

The Credit Suisse/Tremont Index is constructed using a database of more than 4,500 hedge funds. It includes both open and closed funds located in the US and offshore, but does not include fund of funds. In order to qualify for inclusion in the index selection, a fund must have a minimum of $50 million under management, a 12-month track record, and audited financial statements.