Hedge fund returns top 9% in 2013 — 2 reports

Aggregate hedge fund returns were more than 9% in 2013, the best annual return in the past three years, according to data from Hedge Fund Research and eVestment.

In separate reports released Wednesday, HFR reported that the HFRI Fund Weighted Composite index returned 9.3% for the year ended Dec. 31, the best annual performance since the index returned 20% in 2010.

eVestment, on the other hand, reports the average return of the hedge funds that report to its database, and in 2013, its Hedge Fund Aggregate average return was 9.2%. Returns of the eVestment Aggregate were 7.4% in 2012; -3.1%, 2011; and 10.5%, 2011.

By comparison, the S&P 500 index's one-year return as of Dec. 31 was 32.2%; MSCI All-Country World index, 23.5%; and Barclays Aggregate Bond index, -2%.

HFR's 2013 top five hedge fund indexes in order of returns were HFRI Equity Hedge Sector Technology/Healthcare, 22.3%; HFRI Relative Value Yield Alternatives, 16.7%; HFRI Equity Hedge (Total), 14.6%; HFRI Event-Driven Distressed/Restructuring, 13.6%; and HFRI Event-Driven (Total), 12.5%.

eVestment's aggregate hedge fund strategy returns for the 12 months ended Dec. 31 were led by event-driven activist, 19.1%; long/short equity, 16.1%; distressed, 14%; event-driven, 12.8%; and multistrategy, 7.6%.

Fixed-income and credit hedge fund strategy returns for both database researchers trailed equity returns for the one-year time frame.