Final performance for the Credit Suisse/Tremont Hedge Fund Index has been confirmed up 0.88 per cent in December and 18.57 per cent for the year, the best annual return for the index in ten years.

The event driven sector was the highest performer for the month, returning 2.28 per cent, while convertible arbitrage and emerging markets were the strongest overall performers for the year, returning 47.35 per cent and 30.03 per cent respectively.

Dedicated short and managed futures funds continued to struggle. The sectors were the only two to finish 2008 in positive territory and are now the only two sectors to finish 2009 in the red.