Emerging markets strategies posted the strongest hedge fund returns in 2017, driven by the performance of India- and China-focused funds, data from eVestment shows.
Emerging markets funds posted average returns of 19.7% for the year, compared to 8.8% in developed markets, amid returns of 35% in India and China respectively.
Indian hedge funds were buoyed by a December surge of 5.7%, while Chinese funds saw December returns average 2.37%.
For 2017 as a whole, Asia-focused hedge funds outperformed their counterparts in the rest of the world returning 21.5%, compared to 16.4% gained in Africa/Middle East hedge funds, and 8.4% from the US and developed Europe respectively.
In the wider hedge fund industry 80% of funds posted positive returns, with 60% of those that did improving on 2016 performance.
They saw aggregate returns of 8.8% for the year, following average gains of 5.7% in 2016 and losses of -0.71% in 2015.
Among primary strategies, long/short equities funds led their peers, with 90% achieving positive returns for a 2017 average of 16%.
Commenting on its findings eVestment said: "Generally, the industry needed a feel good year in 2017, and for many, but definitely not all, that was accomplished."
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