Strategy focus: Equities stage a late rally in December


Not even a late rally could save long/short equity funds in 2008. In a recessionary year, unprecedented in both the failures of financial institutions and in government intervention, long/short equity strategies lost a median 15%, according to the Absolute Return U.S. Equity Index. Global Equity lost a median 14.47%. It's the worst performance ever for equity strategies. 

Stocks rallied in December, as the government continued to cut rates and inject money into the banking system. That small uptick helped domestic long/short equity funds preserve capital. For the month of December, the Absolute Return U.S. Equity