Hedge Funds

November rally drives gains across the board

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November's broad market rally lifted most hedge fund strategies, bumping the Absolute Return Composite index up 0.88% on the month to 4.8% for the year, preliminary data show.

As a whole, however, hedge funds underperformed the broader markets as short positions put a drag on upward market momentum, especially in equities.

The S&P 500 index, for example, gained 3.73% for the month and the Nasdaq Composite rocketed 5.31%. The MSCI World Index rose a little over 4%. US bonds climbed, too, with the Lehman Brothers Intermediate Government Corporate Bond Index up 0.44%.

On the back of a strong dollar