Perhaps unsurprisingly after Indian equities surged in 2014, a hedge fund playing in this market delivered stellar returns, way ahead of other funds ranked by Preqin.

An India-focused hedge fund chalked up the strongest returns for any hedge fund last year and showed returns – after fees were deducted - that were 10 times the surge in the strong India stock market last year, figures show. The country’s stock market shot up in 2014 amid optimism about hoped-for reforms from the recently-elected government.

The Passage To India Opportunity Fund (Cayman), run by Arcstone Capital, delivered net returns for last year of 225.1 per cent. This is a long-bias, value-oriented fund, according to a ranking of fund performance by Preqin, the research firm.

During last year, the MSCI India measure of equities, as denominated in dollars, showed total returns (capital growth plus reinvested dividends) of 23.9 per cent.

In second place in the Preqin rankings was the venBio Select Fund, run by venBio. This is a long/short equity fund focused on biotech, delivering returns of 73.64 per cent. In third place was the Quan Technology Fund, managed by Quan Ventures. This long/short equity fund delivered returns of 70.96 per cent.

In fourth spot is the Midlothian Capital fund, managed by Midlothian Capital Investments. The long/short equity fund achieved a result of 66.91 per cent. In fifth spot was the Merchant Commodity Fund, managed by RCMA Asset Management. This commodities fund delivered returns of 59.29 per cent.