Hedge funds gain in Nov. but lag market - HFR data

BOSTON Dec 7 (Reuters) - Hedge funds gained less than the broader market in November but are still on track to deliver their best returns in a decade in 2009, according to new data released on Monday.

The average hedge fund rose 1.75 percent last month, falling short of the Standard & Poor's 500 index's 5.3 percent gain and the Dow Jones Industrial Average's 6.5 percent increase, new data from Hedge Fund Research shows.

Researchers at the Chicago-based firm said the average fund's 18.8 percent gain since January puts the industry "on pace for the best calendar year performance in a decade."

Strong gains at funds that make big bets on currencies and interest rates, specializing in so-called global macro strategies, helped boost overall returns during the month, HFR said.

This year's gains highlight how dramatically the industry has recovered from last year's 19 percent loss, the $1.5 trillion industry's worst-ever returns.

HFR released its performance numbers a few days after New York-based industry consultants Hennessee Group said the average hedge fund gained 1.8 percent last month.

Performance and flows data are closely watched in investment circles as managers and investors try to understand trends in the loosely regulated hedge fund industry where firms are not required to report their returns or how much money they manage to regulators or anyone else. (Reporting by Svea Herbst-Bayliss; Editing by Tim Dobbyn)