Typical IRR for Hedge Funds?
Wanted to compare the IRR for a hedge fund I hope to intern at to other hedge funds. Anyone have any idea of what a typical or an average IRR for hedge funds are?
Depends what strategy
MM high single digit to high teens most years
Distressed debt high single digit
Tiger Cubs usually Nasdaq return minus 500-1,000 bps, though since November 2021 the new run-rate IRR is -20% per month
sounds high for MM, would say HSD to low teens are considered good year. MSD is a average/non texceptional year. high teens are outliers?
Most hedge funds dont report performance in terms of IRR.
However I interned at a few value L/S (usually operating with slight long bias, ~$1-3bn) shops which compounded anywhere between 10-12%. I also know of a tiger grand cub with a few years of perf #'s that has annualized returns >50%.
I would say HSD/LDD is great for HF that run a sizable short book. 20%+ is great regardless of strategy but more common amongst growth/tech investors who might have more exposure to riskier factors.
which tiger grand cub are you talking about? D1 Capital?
Not one you would have heard of.
ok
Does this happen to a fund in ~$5B AUM range? Think I might know which one.
This is comically false. Wtf are you even talking about. Literally every single hedge fund with institutional investors reports IRR.
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