CHART OF THE DAY: Hedge Fund Performance This Year Is Just Sad

The analysts at Goldman Sachs have just published their latest Hedge Fund Trend Monitor report, which tracks the equity investments of the world’s hedge funds.

One thing is clear: hedge funds are struggling to keep up with the market.

“The typical hedge fund generated a YTD return of 5% through May 10, compared with 15% gains for both the S&P 500 and the average large-cap core mutual fund,” wrote Goldman Sachs Amanda Schneider.  “Hedge funds returned an average of 3.5% in 1Q 2013, lagging the S&P 500 by 700 bp. Last year the average fund returned 8% vs. 16% for the S&P 500.”

In other words, you would’ve been much richer if your money were sitting in a boring, low-cost index fund.

hedge fund performance

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