Hedge fund returns got a small bounce from the Donald Trump victory even though few of them predicted the election outcome correctly.
The HFRI Fund Weighted Composite Index gained 0.9% in November and the index value rose to its highest level since May 2015 and second highest since inception in 1990.
The November advance reversed a decline from the previous month and was the eighth monthly gain in the past nine months.
Year-to-date performance of the index, which covers many hedge fund strategies, was 4.6%.
Kenneth J Heinz, president of HFR, which produced hedge fund indices, said: “While few funds may have predicted the election result, it was a true inflection point with hedge fund performance benefitting from post-election fundamental mean-reversion and convergence predicated on gradually normalising risk-free rates and a pro-business agenda for the coming term.”
Hedge funds that have tactically adjusted their investment positions for this environment are likely to lead industry performance and growth into 2017, he added.
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