Hedge funds gained 1.01 percent in December, taking the 2016 returns to 4.48 percent, according to data provided by Eurekahedge. The MSCI AC World Index (Local), which represents underlying markets, gained 2.38 percent in December, with the 2016 returns coming in at 7.37 percent. Almost 19.7 percent of the hedge funds recorded double-digit returns in 2016, up from 17.6 percent in 2015.

The Trump Impact

Buoyed by Donald Trump’s victory in the U.S. presidential election, the North American equity markets rose in December, with the S&P 500 gaining 1.82 percent and the Dow Jones Industrial Average up 3.34 percent.

Highlights Of 2016

In 2016, assets under management contracted for the first time since 2008. The hedge fund industry shrank by $21.8 billion, with $43.4 billion in investor redemptions offsetting the $21.6 billion in manager performance-driven gains. In contract, the industry had grown by $108.7 billion in 2015, backed mainly by investor allocations of $80.7 billion.

Eurekahedge Indices

• The Eurekahedge Frontier Markets Hedge Fund Index, representing frontier markets investing hedge funds, rose 10.76 percent.
• The Eurekahedge Long/Short Equities Hedge Fund Index gained 3.89 percent.