The first seven months of 2009 have seen funds of hedge funds making welcome gains, although some have lagged behind.
Among the best performers in the sector has been Aurora Global Opportunities Offshore Fund, which is up 16.27% over seven months following a 3.93% July return. Aurora repositioned its multi-strategy portfolios to give substantially more long/short credit exposure at the start of 2009, driving the first half's gains.
This was in line with the managers' view that the credit space has typically rebounded fastest after periods of market stress, such as in 1998 and 2002. Aurora also saw good