$1billion Plus Hedge Funds Show Strongest Average Returns

The latest research by Preqin into hedge fund performance finds that as of the end of August, large hedge funds – those with AUM of $1bn or more* – posted the greatest returns of any size category. They outperformed emerging, small and medium funds for the month (with -1.49% returns), as well as across the 12-month (+4.30%), 3-year annualized (+9.06%), and 5-year annualized (+8.52%) horizons. They also had the lowest 3-year volatility of any size class, of only 3.29%. Emerging hedge funds, those with AUM of less than $100mn, had the lowest returns across all horizons, as well as the highest volatility.

Other Key Hedge Fund Performance Facts:

Sharpe Ratios: The rolling...