The hedge fund industry made investors a net return of 13% on average in 2006, according to an initial estimate published by data provider Hedge Fund Research.

The company said its fund-weighted, composite index had risen 1.56% in December, taking it to 12.99% for the whole year. This compares with a net return of 9.3% in 2005, 9% in 2004 and 19.6% in 2003.