Hedge funds rebounded in November, putting them on track to post their best annual performance since inception of the Credit Suisse/Tremont Hedge Fund Index in January 1994.

The index finished up 2.11 per cent for the month, bringing year to date performance to 17.53 per cent through 30 November 2009.

Managed futures experienced its best month since October 2008, rising 4.94 per cent, as managers capitalized on clear trends in equities, short-term interest rates and commodities.

Global macro was the second best performing sector, up 3.52 per cent, as models captured gains in equities, credit and precious metal markets.

Managers across strategies profited from upward momentum in precious metals, specifically gold, which hit record nominal highs during the month.

All sectors were positive for the month, with the exception of dedicated short bias, which fell 2.99 per cent amidst rising global equity markets.