Poor performance, positive flows
Hedge funds had their second worst year on record, with the Eurekahedge Hedge Fund Index returns for December a negative 0.27%, taking the year’s returns to a negative 4.22%. Asset flows in 2011 reached $51 billion, taking total industry assets to $1.71 trillion.
Five hundred funds were up more than 10% for the year, with large hedge funds outperforming smaller hedge funds by 7.5%. Launch activity was strong with more than 1,100 funds starting business in 2011,