Hedge Funds Have Record High Client Satisfaction Despite Rough Year

Hedge funds haven’t had a great year, but the level of satisfaction among institutional investors is at a historic high according to a recent Preqin survey. Only 16% of institutional investor said that hedge funds had not met their performance expectations in 2013, compared to 63% who said their needs had been met and 21% who felt that hedge fund performance had surpassed expectations.

Hedge funds have posted roughly 10% returns so far this year, compared to more than 25% returns from US equities. Even though this is an improvement from the 8.24% returns at this point last year, when hedge funds lag behind the stock market so much...