Hedge funds reported gains of 11.08% in 2013, their best net returns since 2010, according Preqin’s Hedge Fund Analyst.
The report notes that last year’s results were ahead of the 10.13% returned in 2012 and the benchmark loss of -1.93% in 2011.
Despite the fact that hedge funds underperfomed against indexes such as the S&P 500, investors are largely satisfied with the performance in 2013.
Eighty-four percent of investors say that return expectations had been met or exceeded in 2013.
“Investors are now looking beyond absolute returns; they are also looking for funds to produce strong risk-adjusted returns with low volatility on a consistent basis,” says Amy Bensted, head of hedge fund products at Preqin. “The performance of hedge funds over 2012 and 2013 has certainly delivered this.”
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