Mixed returns for hedge funds

Funds of hedge funds have had mixed returns over the past 12 months, with good performers making strong strategy choices early enough to avoid the poor performing areas such as merger arbitrage. The Dexia World Alternative Alpha EUR C fund, with $184.95m assets under management, is ranked eighth over the period and the fund's performance has been 14.8%. In November last year, the fund was underweight event-driven strategies, which represented less than 5% of assets under management, according to senior fund manager Jean-Sebastien Debusschere. He identified merger arbitrage as being ...