Jan 7 (Reuters) - Hedge funds bounced back in December to end a challenging year on a strong note and deliver broad-based annual returns of 10.3%, the third best performance since 2009, industry figures showed on Friday. HRF's benchmark HFRI Fund Weighted Composite Index rose 1.28% in December, following a steep 2% fall in November. The annual gain of 10.3% was slightly lower than the previous year's 11.83% rise. The HFRI Equity Hedge Index rose 11.96% last year, also lifted by a 1.85% rebound in December.