2015 Impact of Size & Age on Hedge Fund Performance

The 2015 edition of eVestment’s Impact of Size & Age on Hedge Fund Performance report continues to build on findings from last year’s report to provide insight into performance trends for funds of various sizes and ages.

Some key findings in this report include:

  • The proportion of small (<$250m) hedge funds is declining across the hedge fund industry, while investor interest in medium ($250-$999m) and large (≥$1b) hedge funds seems to be growing as these two groups now make up their largest share of the reporting industry to date
  • Age appears to play a greater factor in relative performance than size. Young (<2 years) funds posted the highest cumulative returns since 2003 and during the past 5 years
    have also outperformed mid-age (2-5 years) and tenured (>5 years) funds.
  • Within the tenured group the largest funds have been less volatile. The average large fund was continually less volatile than the average medium, and the medium kept a persistently lower standard deviation than the small.