Fund Returns
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?
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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