Hedge funds are on course to complete their best start to the year since 1999 in a recovery that has begun to restore investors’ faith in them, while other parts of the financial services industry continue to show signs of revival.

Hedge funds made an estimated 9.73% in returns for the year to June 24, according to figures published by data provider Hedge Fund Research. Individual managers, including UK firm Henderson Global Investors, have seen funds rise by more than 60% this year. In the wake of these results, the GBP1.8 billion (EUR2.1 billion) Avon Pension Fund has been advised to stick with its 10% allocation to hedge funds after putting them under review, while the Clwyd Pension Fund said it would keep 5% in funds of hedge funds and is looking for a single manager hedge fund.

Wallstreet Journal