Hedge funds lost 0.64 per cent in December according to the Barclay Hedge Fund Index compiled by BarclayHedge. The Index was up 0.29 per cent at the end of 2015, its smallest yearly gain since 2011 when it declined 5.48 per cent. The Index was unable to outperform the S&P 500 Total Return Index, which gained 1.38 per cent last year.