Absolute Return has been a leader in measuring the hedge fund industry size and performance since beginning coverage in 2003. The below charts show how the industry has grown in assets; the number of new launches each year; and industry performance compared to benchmark equity indices.
Hedge fund assets have grown substantially, even though the industry is still recovering from post-financial crisis cash flight:
While the overall industry has grown, the number of new launches has slowed, reflecting institutional investor preference for established managers:
Across all strategies, hedge funds have struggled to outperforming U.S. and global equity markets, even if they had substantially less volatility: