How impressive (or not really) would it be for a $2bn long/short fund to have generated around 12 percent annualized returns for the past 15 years? Would you say performance is pretty average?
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12% annualized, largely uncorrelated with the broader market, would be pretty respectable over a 15 yr time horizon.
Solid for that AUM. 85% of funds underperform the market and the 15% that perform or outperform seldom do so year after year or for multiple years.
A lot depends on the degree of leverage and market exposure.
That would be an exceptional track record, barring some exceptional circumstance. 12% net to investors means 15%+ gross returns over a 15 year period in which the market likely compounded at less than 6% (I haven't gone back to do the math). And presumably the fund had lower-than-100% net exposures.
What's the vol? Shouldn't this be a pretty relevant question?
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