India-focused hedge funds recorded their best performance since May 2009 in September 2012, logging nearly 10 per cent returns. As of September 2012, the funds have achieved 9.4 per cent returns during the 2012 calendar, a marked improvement vis-à-vis 2011, when the funds saw nearly a quarter of their investments wiped out.

During the last three months alone, the Eurekahedge India Hedge Fund Index has witnessed a 10.9 per cent rise. But if the one-year period up to September 2012 is considered, the return amounts to a paltry 0.03 per cent as a result of the debacle last year.

Analysis reveals that fixed income funds have delivered just a 1 per cent return, whereas long-short equity-focused hedge funds garnered 10.3 per cent and multi-strategy funds 8.5 per cent. But multi-strategy funds secured the best return of 14.5 per cent in September 2012, compared to 9.9 per cent for long-short equity funds and 1.6 per cent for fixed income funds.

(This article was published on November 10, 2012)
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