Highbridge multi-strategy fund rises 20 pct in H1

LONDON, July 13 (Reuters) - Highbridge Capital Management, one of the world's biggest hedge fund firms, saw its flagship fund rise 20.5 percent in the first half of the year, according to an investor letter, as performance in the industry rebounds.

Highbridge's $7 billion multi-strategy fund returned 3.4 percent in June, the letter said, having last year fallen 25 percent and stopped clients from withdrawing all their cash.

Performance was helped by positions in Highbridge's Asia Opportunity fund, up 30 percent in the first six months, and the Leveraged Loan Partners fund, up 63 percent, a source familiar with the matter said.

The first half marks one of the multi-strategy fund's best periods of performance on record, the source said.

Hedge fund performance across the industry has picked up markedly this year after record losses in 2008.

The average fund has risen 9.41 percent, according to Hedge Fund Research, led by strategies such as convertible arbitrage, which was badly hit in 2008, commodities and emerging markets.

JPMorgan (JPM.N) bought a 55 percent stake in Highbridge in 2004 and said last month it will complete its takeover of the firm this year. (To read the Reuters Hedge Fund Blog click on blogs.reuters.com/hedgehub; for the Global Investing Blog click here) (Reporting by Laurence Fletcher; Editing by Dan Lalor)