The organization said performance data showed an improvement in December for hedge funds, although strategies were varied in their results. Total assets hit a record.

Hedge funds gained in December to conclude a volatile year,
navigating election and geopolitical risks, falling but
persistent inflation, and surging cryptocurrency prices,
according to industry figures.

Different hedge fund strategies delivered mixed results following
the more broad-based November figures, Hedge Fund
Research said in a report late last week.

New hedge fund launches rose while liquidations declined sharply
heading into the fourth quarter of 2024. The estimated number of
new funds launched in Q3 2024 increased to 118, up slightly from
the prior quarter estimated launch total of 111, while
liquidations in Q3 fell to only an estimated 82 closures, the
lowest quarterly liquidation total since the second quarter of
2006.

As previously reported, total hedge fund industry capital rose to
a record $4.46 trillion.

New fund launches remained strong, with the estimated
year-to-date total of 375 launches over the first three quarters
of 2024 topping the same period year-over-year. 

Performance

HFR said its HFRI Asset Weighted Composite Index gained 0.8 per
cent in December; the HFRI Fund Weighted Composite Index fell 0.2
per cent for the month.

Strategy gains were led by uncorrelated macro and relative value
arbitrage strategies, while directional equity hedge and event
driven exposures lost ground, with each of these paring strong
annual gains and the strongest single monthly return for 2024 in
November.

The HFR Cryptocurrency Index fell 2.4 per cent in December after
surging by 35.7 per cent in November on the favorable outlook for
cryptocurrency by the incoming Trump administration, ending the
volatile year with a 59.8 per cent return. 

Hedge fund performance dispersion tightened in December.