Based on the December performance for the Credit Suisse Long/Short Equity Liquid Index, long/short equity funds ended the year on a high note as managers took advantage of increased equity market opportunities.

Jordan Drachman, head of research for alternative beta strategies at Credit Suisse, says: "Long/short equity hedge funds experienced positive December returns in line with many global equity markets. In particular, managers were able to capitalize on increased volatility in Asian markets, including a significant year-end rebound in Japan which contributed to opportunities in the sector.”

The Long/Short Equity Liquid Index was up 1.19 per cent (net) for the month and 13.12 per cent (net) year to date.

However, the Credit Suisse Global Macro Liquid Index was down 1.70 per cent (net) in December and up 3.93 per cent (net) year to date.