Hedge funds in 2011: short sellers and fixed-income arbitrage lead, emerging markets managers lag

By: Timothy Pollard

Published: January 23, 2012


According to EDHEC-Risk Alternative indexes' December data, short selling and fixed-income arbitrage hedge funds posted the strongest performance in 2011. Hedge funds with a short bias posted returns of 6.5%, likely driven by the plunge in equity markets between May and October when the S&P 500 slumped nearly 20%. Emerging markets managers were down almost 11%, as the MSCI Emerging Markets index lost more than 18% of its value in 2011.

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