Hedge funds gained 0.56 per cent in November, according to the Barclay Hedge Fund Index compiled by BarclayHedge.

The index is up 7.75 per cent year-to-date.

“Hedge funds appear to be on their way to another profitable year,” says Sol Waksman, founder and president of BarclayHedge. "The Barclay Hedge Fund Index has had consistent gains in 13 of the past 14 years. The single losing year was a 23.53 per cent loss in 2008 when global stock markets collapsed."

Fourteen of Barclay’s 18 hedge fund indices were up in November. The Barclay Pacific Rim Index gained 1.80 per cent, equity long bias was up 1.09 per cent, equity market neutral gained 0.92 per cent, and European equities rose 0.85 per cent.

"With equity markets in all but three developed countries declining in November, equity-based hedge funds certainly earned their fees last month," says Waksman.

The Equity Short Bias Index lost 1.78 per cent in November, global macro dropped 0.56 per cent, and emerging markets were down 0.23 per cent.

“Although equity prices declined in two-thirds of the developing markets, funds trading in this sector did a good job of limiting losses,” says Waksman. "Potential damage from rising interest rates was also well-contained by managers."

The Barclay Fund of Funds Index gained 0.18 per cent in November, and is up 2.99 per cent for the year.