Best Performing Hedge Fund Strategies This Past Decade

Based on the HFR indices, here are the top hedge fund strategies over the past decade. We can note that converts have had bad years but were top performers on exit of recessions (2002, and 2009). Distressed investing shows a similar pattern (#3 in 01 and 03 and #1 in 2004, then #4 in 2009). Emerging markets have been consistently good performers these past few years, except in 08. Systematic strategies have done very well in the second half of the decade, even in 2007 despite August of that year; of course, last year is an exception due mostly to trend followers.

(click on chart to enlarge. Source: dataforthoughts)