Arbitrage funds finished 2007 in the same fashion in which they went through much of the year - undistinguished. The Absolute Return Arbitrage Index gained 0.15% in December, bringing the year's total gains to 6.88%. By comparison, the Absolute Return Composite Index logged 8.53%.
Outperformers included the $600 million New York-based Agamas Continuum Fund, which returned 1.2% in December to bring its total 2007 return to 27.3%. These results were achieved by managing to avoid down months as well as having a particularly strong July, when the fund gained 5.1%. Dan Gold's QVT Overseas fund also performed particularly well,