Hedge funds finished down 19% for 2008 according to the Credit Suisse/Tremont Hedge Fund Index.

The Credit Suisse/Tremont Hedge Fund Index was more or less flat in December, finishing down just 0.03% in the month.

“Despite a late month equity rally, hedge funds finished marginally down in December, losing 0.03% to bring overall hedge fund performance to -19.07% for 2008,” said Oliver Schupp, president of Credit Suisse Index Co., Inc.

Schupp noted that, “Managed Futures had another strong month, adding 2.37% to bring their performance to 18.33% for the year. Dedicated Short Bias funds also generated strong positive returns amidst extremely adverse conditions last year, finishing up 14.87% for 2008.”

IE