Larger hedge funds outperformed their smaller peers last year for the first time since 2018, according to a report by the Wall Street Journal.
As evidence, the report cites the performance of the HFRI Fund Weighted Composite Index, which gives equal weight to funds of all sizes, and fell -4.25% in 2022, and the HFRI Asset Weighted Composite Index, which gives more weighting to the larger funds, and rose 0.97%.
This marks a turnaround from recent years when smaller funds have bettered their bigger brethren. The composite index rose 10.16% in 2021, compared with a 7.39% gain for the asset-weighted index, while in 2020, the composite index gained 11.83% compared with a gain of just 2.19% for the asset-weighted index.
