Fund of hedge funds have had their worst year on record with the InvestHedge Composite down -0.72% in December and a total of -16.63% for the full year. Global Multi-Strategy followed a similar trend, down -0.96% in December, and an overall -17.34%. Given that many funds of funds will have written down Madoff losses in December, the month end average is not as bad as expected.
All medians, apart from Global Macro that was up 3.52%, were down in double digits for the year. December saw relatively benign performance for all medians, except Arbitrage that was down 1.75%,