Bloomberg News

Hedge Funds Had Second-Worst Year in 2011, Eurekahedge Says

January 03, 2012

(Updates with the number of hedge funds that started in 2011 in fourth paragraph.)

Jan. 3 (Bloomberg) -- Hedge funds suffered their second- worst year on record in 2011 amid the European sovereign debt crisis and concerns of a global economic slowdown, according to Eurekahedge Pte.

The Eurekahedge Hedge Fund Index was down 4.1 percent in 2011, the Singapore-based data provider said in an e-mailed statement today. Asset flows for the year totaled $67 billion, bringing the entire industry size to $1.72 trillion, it said.

The benchmark measure fell for the first time since 2008, when it dropped a record 10 percent, as investors remained reluctant to take risks, making it difficult for them to raise capital, according to the report. Eurekahedge started compiling the industry’s data in 2000.

More than 1,100 hedge funds started in 2011, the second- highest number of new funds, the report said. Latin American hedge funds provided the best returns in 2011, gaining 2 percent, followed by North American funds that lost 0.8 percent, it said.

--Editors: Linus Chua, Andreea Papuc

To contact the reporter on this story: Tomoko Yamazaki in Singapore at tyamazaki@bloomberg.net

To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net


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