AlternativeSoft: US Equity Long Short Hedge Funds Returns Versus US Growth Mutual Funds Returns: Which Performed the Best in 2020?

LONDON--(BUSINESS WIRE)--Anchor: We compare 1094 US hedge funds with 621 US Growth mutual funds and found that the mutual funds drastically outperformed the best equity long short hedge funds.

1094 US Long Short Hedge Funds and 621 US Growth Mutual Funds had assets under management higher than $50m. In addition, weighted averages were used to perform the calculations (i.e., funds with larger AUM weight more).

The table below shows that the 1094 Equity Long Short Hedge Funds, on average, had a 2020 annualized return of 6.13%, Growth Mutual Funds’ 2020 annualized return of 40.99%.

	Hedge Funds Long Short US
		Return during 2020	Annualized Volatility	Normal monthly VaR 95%	Annual Smart Sharpe Ratio (Rf 0.25%)
Non-Weighted Indices	AlternativeSoft Average (n=1094)	17.29%	20.75%	-8.38%	0.96
	Eurekahedge Long Short Equities Hedge Fund Index	17.79%	14.84%	-5.59%	0.94
	HFRI Equity Hedge (Total) Index	17.89%	18.03%	-7.05%	0.69
Weighted Indices	AlternativeSoft Average (n=1094)	6.13%	16.71%	-7.42%	0.43
	Eurekahedge Long Short Equities Hedge Fund Index	5.97%	13.97%	-6.07%	0.32
	HFRI Equity Hedge (Total) Index	8.95%	15.45%	-6.53%	0.41

	Growth Mutual Funds USA
		Return during 2020	Annualized Volatility	Normal monthly VaR 95%	Annual Smart Sharpe Ratio (Rf 0.25%)
Non-Weighted Indices	AlternativeSoft Average (n=621)	36.81%	16.5%	-6.10%	1.28
Weighted Indices	AlternativeSoft Average (n=621)	40.99%	16.49%	-5.99%	1.37
	Russell 2000 Growth Index	33.76%

Source: Morningstar, Eurekahedge, HFR

In conclusion, the US Growth Mutual Funds outperformed US Equity Long Short Hedge Funds by 34.86% in 2020.

N.B. This article does not constitute any professional investment advice or recommendations to buy, sell, or hold any investments or investment products of any kind, and should be treated as more of an illustrative piece for educational purposes.

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