A veteran American hedge fund manager has bounced back after a fund he ran collapsed in 1997. His new vehicle produced a net return of 56.2% last year, well above the hedge fund average of 8%.

The performance follows a rise of 40.6% for Victor Niederhoffer's $260m (€216m) Matador-managed futures fund in 2003 and 50.1% in 2004. The result was achieved by Niederhoffer's rapid trading of US stock options.