Performance

Hedge funds produce consistently higher returns with substantially less volatility than other leading indices helping individual and institutional investors meet their investing goals.1

 

Hedge Funds Outperform Major Indices

  • Hedge funds have consistently outperformed the major stock indices, returning investors 88% while the S&P 500 Index lost 23% between 2000 and 2009. Hedge funds also have a track record of managing risk and even making money in down markets; historically they’ve been one-third less volatile than the S&P 500.2
  • Over the past two decades, the industry has seen tremendous growth in the number of funds operating – from 610 in 1990 to nearly 10,000 funds in the marketplace today.3
  • In recent years, the hedge fund industry has grown in both number of individual funds, and in diversity and innovation of investment strategies.

index-vs-s&p

Higher Returns and Less Volatility Help Institutional Investors:

  • Improve the quality of life through foundations: Foundations, with investments in hedge funds, support communities in the U.S. and around the world through improvements in education, economic development, and health as well as an emphasis on arts and cultural development.
  • Create educational opportunities through endowments: For many educational institutions, hedge funds are an important tool used to grow endowment assets to help fund scholarships, financial aid, research, athletics and other programs.
  • Build retirement security through pension plans: Many public and private pension plans, which rely on hedge funds to provide diversify their portfolios, manage risk and produce reliable returns, provide retirement security to millions of families in America and around the world.4

return-risk

More information can be found on our Industry Resources Page

 

 

 


1Ravi Jagannathan, Alexey Malakhov, Dmitry Novikov, “Do Hot Hands Persist Among Hedge Fund Managers? An Empirical Evaluation,” National Bureau of Economic Research, February 2006.

2Hennessee Group LLC

3Data current as of Q4 2013; source: Hedge Fund Research, Inc.

4 SEI/Greenwich Associates, 2009; Infovest21, 2010