Hedge fund returns have varied sharply by year, strategy, and measurement method. SEC Form PF figures show average net returns ranging from -4.3% in 2022 to 11.4% in 2013, while more recent benchmark and administrator data describe strong results in 2024, 2025, and January 2026. The figures below keep gross returns, net returns, index returns, survey results, and strategy-specific results distinct.
Table of contents
- SEC Form PF gross and net returns
- Fees and the gross-to-net gap
- Administrator and benchmark results
- HFR performance in late 2025
- Full-year 2025 strategy returns
- January 2026 and alternative indexes
SEC Form PF gross and net returns
The SEC Form PF Performance, Fees, and Allocations figures provide a consistent annual series for average hedge fund gross and net returns from 2013 through 2023. Gross return is shown before the reported margin, while net return reflects the result after that margin. These are averages for the SEC Form PF population and should not be read as the return of every hedge fund or strategy.
| Year | Average gross return | Average net return | Gross-to-net margin |
|---|---|---|---|
| 2013 | 14.4% | 11.4% | 3.0 percentage points |
| 2014 | 6.9% | 4.9% | 2.0 percentage points |
| 2015 | 1.8% | 0.2% | 1.6 percentage points |
| 2016 | 6.4% | 4.7% | 1.8 percentage points |
| 2017 | 11.9% | 9.7% | 2.2 percentage points |
| 2018 | 0.4% | -1.0% | 1.4 percentage points |
| 2019 | 12.5% | 10.5% | 2.0 percentage points |
| 2020 | 11.9% | 9.4% | 2.5 percentage points |
| 2021 | 11.4% | 9.1% | 2.3 percentage points |
| 2022 | -3.0% | -4.3% | 1.4 percentage points |
| 2023 | 11.5% | 9.7% | 1.8 percentage points |
The strongest average gross return in this series was 14.4% in 2013, paired with an 11.4% average net return. The 2019 result was also strong, at 12.5% gross and 10.5% net. Average gross return reached 11.9% in both 2017 and 2020, although the corresponding net figures were 9.7% and 9.4%.
The weakest year was 2022. Average gross return was -3.0%, and average net return was -4.3%. The only other negative average net result in the series was 2018, when gross return was 0.4% and net return was -1.0%. In 2015, the average gross return was positive at 1.8%, but the average net return was only 0.2%.
The series also shows that positive average gross performance did not always translate into a large positive net result. In 2016, for example, average gross return was 6.4% and average net return was 4.7%. In 2023, the comparable figures were 11.5% and 9.7%.
The SEC Form PF source reports the original annual measurements as averages. It does not establish that any individual fund achieved the average, and the figures should not be treated as a forecast for a later period.
Fees and the gross-to-net gap
Across the SEC Form PF series, the reported difference between average gross and net returns ranged from 1.4 to 3.0 percentage points. The largest stated margin was 3.0 percentage points in 2013. The margin was 2.5 percentage points in 2020, 2.3 percentage points in 2021, and 2.2 percentage points in 2017. It was 1.4 percentage points in both 2018 and 2022.
The SEC also estimated that hedge fund fees and allocations totaled approximately $517.7 billion from 2013 to 2023. This is a cumulative dollar estimate for that period, not an annual return and not a measure of investor profit. It provides context for why gross and net performance should be reported separately when comparing hedge fund returns statistics.
| Period or observation | What the source reports |
|---|---|
| 2013 | 3.0 percentage-point gap between 14.4% gross and 11.4% net |
| 2018 | 1.4 percentage-point gap between 0.4% gross and -1.0% net |
| 2020 | 2.5 percentage-point gap between 11.9% gross and 9.4% net |
| 2022 | 1.4 percentage-point gap between -3.0% gross and -4.3% net |
| 2013–2023 | Approximately $517.7 billion in estimated fees and allocations |
These margins are reported observations from SEC Form PF and are not a universal fee schedule. They summarize the difference in this dataset’s average gross and net measures for each year.
Administrator and benchmark results
Citco reported that hedge funds delivered a 15.7% weighted average return overall in 2024, described as their highest annual return in four years. Citco also reported that equity hedge funds produced a 20.2% weighted average return in 2024, making that strategy group the top performer in its 2024 report.
For funds administered by Citco, the reported weighted average return was 14.5% in 2023, compared with -7% in 2022. Citco said 80% of funds achieved positive returns in 2023. These administrator-specific observations have a different scope from the SEC Form PF annual averages and should not be combined into one continuous performance series.
AIMA reported that the Preqin All Strategies Hedge Fund Benchmark had a 15.96% trailing 12-month return at the end of Q1 2024. The same benchmark had a 6.09% three-year annualized return at the end of Q1 2024. The trailing 12-month figure and the three-year annualized figure describe different time windows, so they are not directly interchangeable.
AIMA’s Q2 2024 Hedge Fund Confidence Index also reported an overall confidence score of +16.5 on a scale from -50 to +50. About 250 hedge fund firms worldwide responded, representing approximately US$590 billion in assets under management. A confidence score is a survey measure rather than an investment return.
The supplied historical research is labeled as existing research and not independently verified. Accordingly, the Citco, AIMA, and SEC observations above are presented with their original source labels and measurement periods rather than treated as independently re-calculated results.
HFR performance in late 2025
HFR reported that the HFRI Fund Weighted Composite Index gained 0.7% in November 2025. November was the index’s seventh consecutive monthly gain. About 60% of hedge funds produced positive performance during that month.
The November strategy results were uneven. The HFRI Macro (Total) Index advanced 1.0%, while the HFRI Macro: Commodity Index jumped 2.4%. The HFRI Macro: Systematic Diversified Index added 0.8%, and the HFRI Long Volatility Index gained 0.1%. The HFRI Multi-Manager/Pod Shop Index added 0.65%. By contrast, the HFR Cryptocurrency Index fell 8.0%, its worst performance since February 2025.
Dispersion between stronger and weaker funds was also material. Top-decile HFRI Fund Weighted Composite constituents gained 7.9% in November 2025, while bottom-decile constituents fell 5.0%. HFR reported top-to-bottom dispersion of 12.9 percentage points, compared with 13.8 percentage points in October 2025.
HFR then reported a 1.6% gain for the HFRI Fund Weighted Composite Index in December 2025, its eighth consecutive monthly gain. About 75% of hedge funds produced positive performance in December. Top-decile constituents gained 8.9%, while bottom-decile constituents fell 3.8%, producing 12.7 percentage points of dispersion. The December dispersion was 12.6 percentage points in November according to the comparison supplied by HFR.
Full-year 2025 strategy returns
HFR reported that the HFRI Macro (Total) Index advanced 7.2% for full-year 2025, while the HFRI Macro (Asset Weighted) Index gained 6.9%. The HFRI Equity Hedge Index gained 1.8% in December and finished 2025 up 17.3%. HFR described 17.3% as the Equity Hedge Index’s strongest annual gain since 2020 and its second-strongest since 2009.
Energy, healthcare, and multi-manager results were notably different from the broad macro figures. The HFRI EH: Energy/Basic Materials Index surged 5.2% in December and finished 2025 up 23.4%. The HFRI EH: Healthcare Index ended 2025 up 33.8%, after a 45.8% gain from June through December 2025. The HFRI Multi-Manager/Pod Shop Index added 1.1% in December and finished the year up 9.7%.
Other HFRX measures reported for December included a 0.58% gain for the HFRX Global Index, a 0.66% gain for the HFRX Equal Weighted Index, and a 1.3% advance for the HFRX Macro/CTA Index. The HFRX Equity Hedge Index returned 10.1% for full-year 2025.
| HFR measure | December 2025 | Full-year 2025 |
|---|---|---|
| HFRI Equity Hedge Index | 1.8% | 17.3% |
| HFRI EH: Energy/Basic Materials | 5.2% | 23.4% |
| HFRI Multi-Manager/Pod Shop | 1.1% | 9.7% |
| HFRX Global Index | 0.58% | — |
| HFRX Equal Weighted Index | 0.66% | — |
| HFRX Macro/CTA Index | 1.3% | — |
| HFRX Equity Hedge Index | — | 10.1% |
The table mixes monthly and annual observations because HFR reported both for these measures. A dash means that the supplied HFR figures did not provide the corresponding period for that row.
January 2026 and alternative indexes
HFR reported that the HFRI Fund Weighted Composite Index advanced 3.0% in January 2026, extending its consecutive monthly gain streak to nine months. January’s HFRI EH: Energy/Basic Materials Index surged 6.5%. HFR also reported that the strategy’s 2025 return was 20.2%, described as its strongest annual return since 2021.
For context, HFR said the HFRI Equity Hedge Index had led 2025 with a 17.3% return, while the HFRI EH: Energy/Basic Materials Index’s 20.2% 2025 gain was stronger. The 20.2% figure differs from the 23.4% full-year figure reported elsewhere for the Energy/Basic Materials Index, so both source-labeled observations are retained with their original report contexts rather than reconciled through unsupported arithmetic.
HFR also reported that the HFRI Liquid Alternative UCITS Index gained 0.89% in December 2025 and 9.95% for full-year 2025. This is a liquid-alternative index result, not the same measure as the HFRI Fund Weighted Composite Index.
Finally, the supplied research reports an HFRI HFCI Q4 2024 overall confidence score of +18.8, with 86% of respondents reporting a positive confidence score. As with AIMA’s +16.5 Q2 2024 score, this is a sentiment measure rather than a return statistic. Keeping confidence, benchmark performance, administrator observations, and SEC Form PF averages separate is essential when interpreting hedge fund returns statistics.