The Hedge Fund Replication Index gained 1.1 per cent in November, bringing year to date gains to 9.0 per cent.

Although this appears to significantly lag the non-investable HFRI Fund Weighted Composite Index performance, which is up 18.8 per cent year to date, the replication index only trails by two per cent since the start of 2008.

The replication index has performed comparably to the investable HFRX Equal Weighted Strategies Index, which has returned 10.41 per cent year to date, and is significantly ahead over the two year period.

Although the investable indices are often criticised for their construction methodology and constituent funds, the HFRX Equal Weighted Strategies Index has performed almost identically over the past two years to the HFRI Fund of Funds Composite Index.