Charted: Hedge funds still can’t match the S&P 500
2021 wasn’t the year for hedge funds to finally outperform passive investing.
The big picture: Some hedge funds are sure to beat the index in any given year. But average hedge fund returns continued to lag — in a big way, according to data provided by eVestment.
- Event-driven-activist strategies came closest to the S&P's 28.7% gain last year, returning 27.3%. The runners-up were distressed investing at 14.6% and long/short equity at 13.4%.
The bottom line: Actively managed mutual funds don't usually beat the market either, as we've reported. And that's one reason assets invested in passive funds have ballooned over the last five years.