As November goes ...

Look for markets to continue November's upward climb and finish the year strongly. That's the projection of Hennessee Group LLC, an adviser to hedge fund investors, which detects what it has labeled the “December Effect.” “Historical data seem to support our theory that investors don't sell in December, because they choose to defer paying taxes on market gains until the following year,” said Charles Gradante, a principal, who noted that since 1995, a rising market in November translated into December gains 70% of the time. Over that time period, hedge funds experienced December gains 100% of the time when markets rose in November, he added. The Hennessee Group believes that hedge funds are well-positioned for a relatively good 2010. “As the market rally gets long in the tooth, hedge funds will have the opportunity to generate alpha on the both the long and short sides of their portfolios, while not having to rely on market direction or beta for returns,” Mr. Gradante said. All that for 2 and 20.