The past year could be characterized as a year in which the unexpected happened, with perhaps the Brexit result and Donald Trump’s triumph in the U.S. presidential election the pinnacle of a series of unpredicted events. As markets struggled to respond to these surprising outcomes, volatility increased and hedge funds, following two years of returns below 5%, were able to capture some upside, adding 7.4% during the course of 2016. However, despite hedge fund performance as a whole being well within the targeted range of most investors, 2016 may well be remembered by hedge fund managers as a difficult year,...