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