Japan Focused Hedge Fund Is Best 2013 Performer With 224% Return

While assets under management increased by over $360B during 2013, the hedge fund industry was unable to outperform the gains racked up by the major equity indices.

However, this did not seem to bother institutional investors.

“Evidently, institutional investors are increasingly looking beyond absolute returns, and are focused on the ability of hedge funds to deliver attractive returns combined with low volatility and low correlation with other assets – in other words, their ability to favourably impact the whole portfolio’s risk-adjusted returns,” says Preqin’s CEO Mark O’Hare. “As a consequence, institutional investor satisfaction with hedge fund performance is at its highest levels since Preqin started recording this in 2008,” he adds.