Average aggregate hedge fund returns in 2013 are on pace to more than double the 7% average of 2012, according to performance analysis by eVestment.
Hedge funds returned an average of 4.6% year-to-date April 30 and an average 1% in the month of April.
Long/short equity funds are on track to return more than 20% in 2013, with an average return of 6.7% in the four months ended April 30.
“If — and that is a big if — returns can continue at this pace, long/short equity funds have a chance to produce their best returns in more than a decade,” eVestment predicted in its monthly hedge fund performance report.
Ironically, eVestment's researchers said, “given this exceptional performance from directional equity strategies, it is of interest that long/short equity funds had the highest net investor outflows in 2012 and have continued to see outflows into 2013.”
Through the end of March, long/short equity hedge funds experienced net outflows of $9.4 billion in 2013 and $22 billion in calendar year 2012.
Commodity strategies continued their spiral of negative average returns at -0.9% in April and -2.3% year-to-date April 30. The average return of the commodity group of hedge funds was -0.6% in 2012.
eVestment analysts said commodity hedge fund losses “again illustrated the group's aggregate long-bias toward commodity prices.”
