New Credit Suisse/Tremont Hedge Fund Index research paper recaps the best year for the industry in a decade

Credit Suisse Tremont Index LLC’s new research report, "Hedge Funds Hit a High Note: 2009 Industry Review," examines hedge fund performance in 2009 with a focus on the key factors that contributed to the turnaround seen in the industry last year. It found that 2009 marked the best annual hedge fund performance in a decade (as measured by the Credit Suisse/Tremont Hedge Fund Index) and the greatest performance rebound since 1994.

Some key conclusions from the report include:

• Overall, hedge funds have recouped 77% of 2008 losses from previous peak performance levels or “high water marks.”
• An estimated 58% of all “impaired” assets have returned to standard liquidity status, representing a total of $102 billion. An additional $72 billion in impaired assets currently remain illiquid.
• The hedge fund industry experienced net inflows of $12 billion in the fourth quarter; however, overall the industry lost $74 billion as a result of investor redemptions in 2009.
• Including performance gains, current industry assets under management are estimated at $1.5 trillion as of December 31, 2009.
• The percentage of closed funds in the industry has dropped from 17% to 13% since November 2007, signifying increased investor access to some of the industry’s most in-demand managers.

Click here to view the 2009 year end report.