What percentage of hedge fund managers *consistently* fail to perform above investment benchmarks (S&P 500, etc.)?

Why do these people *continue* to be employed throughout the industry?

likeuplifting
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I agree if you talked about mutual funds that are benchmarked against S&P 500. However, if you have to compare HF, you will have to look at risk adjusted returns.

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Very much agree with risk adjusted return eval...

Investment Approx. Annualized Return
HFRI Fund Weighted Composite 5–8%
S&P 500 10–13%
60/40 Stock-Bond Portfolio 7–9%

To your point about downside protection..
Investment Maximum Drawdown
S&P 500 during 2008 ~ -57%
Average Hedge Fund ~ -19%
Market Neutral Funds Often under -10%

A portfolio that loses 20% instead of 57% needs much less recovery to get back to breakeven.

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For what its worth its also nice to see Hedge fund fee landscape decline to an industry average of 1.35% and 16%.

Many stay employed because they earn management fees regardless of performance. While consistent outperformance is rare, other factors—like client relationships and niche strategies—help keep them in the industry.

“Client relationships” aka…what, really?

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