More than one in five investors say that hedge fund returns in 2013 have exceeded expectations.
That a key conclusion of a survey to appear in a Preqin 2014 Global Hedge Fund Report. The research polled 148 institutional investors with more than $60 billion invested in hedge funds to ascertain their outlook on the industry for next year.
The survey also discloses these findings:
- 21 percent of investors state that expectations on returns had been met.
- Just 16 percent of investors believe that returns expectations had not been met, a noticeable decrease from the 41 percent that stated the same for 2012 in the previous year’s survey.
- Hedge funds have posted 2013 year-to-date returns of 10.04 percent as of Nov. 30, compared to 8.24 percent in the same period in 2012.
- 29 percent of investors say they are looking for hedge funds to produce high absolute returns.
The average net annualized return during the past two years is 10.03 percent (as of November 2013) and the benchmark has been in negative territory just four times out of 23 months since the start of 2012.