Page "Hedge fund" Paragraph 132

Hedge funds posted disappointing returns in 2008, but the average hedge fund return of − 18. 65 % ( the HFRI Fund Weighted Composite Index return ) was far better than the returns generated by most assets other than cash or cash equivalents.

The S & P 500 total return was − 37. 00 % in 2008, and that was one of the best performing equity indices in the world.

Several equity markets lost more than half their value.

Most foreign and domestic corporate debt indices also suffered in 2008, posting losses significantly worse than the average hedge fund.

Mutual funds also performed much worse than hedge funds in 2008.

According to Lipper, the average US domestic equity mutual fund decreased 37. 6 % in 2008.

The average international equity mutual fund declined 45. 8 %.

The average sector mutual fund dropped 39. 7 %.

The average China mutual fund declined 52. 7 % and the average Latin America mutual fund plummeted 57. 3 %.

Real estate, both residential and commercial, also suffered significant drops in 2008.

In summary, hedge funds outperformed many similarly-risky investment options in 2008.