Index returns blew past hedge funds in 2013

Date: Monday, February 24, 2014
Author: Advisor.ca

While the S&P 500 rewarded investors with a 32.4% return in 2013, hedge funds investors got 9.8%, says Business Insider.

Most of the underperformance is from short positions the funds held, says BI. Had the funds stuck only with long-term positions, they would have returned 41%.

Even the average mutual fund, with a return of 31.6%, outstripped hedges, which can be riskier for hedges.