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

March 25, 2021 9:00 AM EDT

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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.

To trial a truly powerful and comprehensive analytic software for investment decisions, fund allocation, and our new, innovative digital due diligence visit alternativesoft.com, call us on +44 20 7510 2003, or email us information@alternativesoft.com

Name: Mitesh Gohil
Phone: +44 20 7510 2003
Email: information@alternativesoft.com

Source: AlternativeSoft



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