Hedge funds investing in India are not making as much headlines as they did during the previous bull run in 2007-08, but they seem to be making money for investors . Good enough to be ranked among the best-performing hedge funds globally, according to analysts at Singapore’s fund research house Eurekahedge. The Eurekahedge Indian Hedge Fund Index returned over 5% in the first eight months of 2010 vis-à-vis 2% gains by benchmark Sensex in the same period. The numbers for September were not available. Asset managers attribute the decent performance of India-focused hedge funds to the buoyant stock market, ‘long only’ strategies by their managers and gains in mid-cap shares. Within Indian hedge funds, 68% of the funds employ ‘long-short’ equity strategy — a mix of buying assets as well as short-selling them — and more than 70% of the funds invest in equities, said experts. “Hedge funds are active in Indian equities,” Farhan Mumtaz, senior analyst, Eurekahedge told ET. “Funds with global and emerging market mandates have also increased their allocations to India,” he added.   more »