Long short equity strategies produced an 8.06% one-year annual return in the HFRI 500 Equity Hedge Index, measured as of December 2024. The same index recorded annualized returns of 0.39% over three years, 5.68% over five years, 4.85% over seven years, and 5.43% since inception. These figures come from the HFRI 500 Investors Guidebook, with the original measurement date and source label retained here.
Contents
- At-a-glance long short equity returns
- One-year performance by sub-strategy
- Three-year results show wider dispersion
- Five-year and seven-year annualized returns
- Since-inception records
- How the strategies compare
At-a-glance long short equity returns
The HFRI 500 Equity Hedge Index provides the broad reference point for the supplied long short equity statistics. Its one-year annual return was 8.06% as of December 2024. Looking across longer windows, the annualized return was 0.39% over three years, 5.68% over five years, and 4.85% over seven years. Since inception, the index returned 5.43% annually.
| HFRI 500 Equity Hedge Index period | Annual return |
|---|---|
| 1 year | 8.06% |
| 3 years | 0.39% |
| 5 years | 5.68% |
| 7 years | 4.85% |
| Since inception | 5.43% |
The horizon matters. The reported three-year annualized figure is the lowest of the five broad-index observations, while the one-year result is higher than each of the reported three-, five-, and seven-year annualized results. These are annualized index returns for the stated periods, not forecasts or a promise of future performance.
All figures in this article are attributed to the HFRI 500 Investors Guidebook, data as of 12/2024. The underlying research is legacy research and was not independently verified for this article. That limitation is important when using the numbers for comparison or investment analysis.
One-year performance by sub-strategy
The listed Equity Hedge sub-strategies show a broad range over the one-year period. Technology led the group with a 21.22% annual return. Quantitative Directional followed at 16.49%, while Energy/Basic Materials returned 11.92%.
Multi-Strategy posted 8.85%, Fundamental Value 8.45%, and the broader HFRI 500 Equity Hedge Index 8.06%. Fundamental Growth was close to the broad index at 8.04%. Equity Market Neutral recorded 6.03%. Healthcare was the only listed sub-strategy with a negative one-year result, at -1.20%.
| Listed Equity Hedge measure | 1-year annual return |
|---|---|
| Technology | 21.22% |
| Quantitative Directional | 16.49% |
| Energy/Basic Materials | 11.92% |
| Multi-Strategy | 8.85% |
| Fundamental Value | 8.45% |
| HFRI 500 Equity Hedge Index | 8.06% |
| Fundamental Growth | 8.04% |
| Equity Market Neutral | 6.03% |
| Healthcare | -1.20% |
The HFRI 500 Investors Guidebook identifies the Technology Index’s 21.22% return as the highest one-year return among the listed Equity Hedge sub-strategies. On the same comparison, the broad Equity Hedge Index’s 8.06% was 13.16 percentage points below Technology’s 21.22%.
The one-year spread between the highest and lowest listed sub-strategy is visible without adding any unsupported calculation: Technology was positive at 21.22%, while Healthcare was negative at -1.20%. The supplied source labels describe these as HFRI 500 EH sub-strategy results, measured as of December 2024.
Three-year results show wider dispersion
The three-year annualized figures are more uneven than the one-year results. Quantitative Directional had the highest reported return at 7.48%, followed by Energy/Basic Materials at 5.81%. Fundamental Value was 2.05%, Equity Market Neutral was 1.76%, and Multi-Strategy was 0.79%.
Technology recorded a modest 0.55% annualized return over three years, while the broad HFRI 500 Equity Hedge Index was 0.39%. Fundamental Growth was negative at -2.21%. Healthcare was lower still, at -7.23%.
| Listed Equity Hedge measure | 3-year annual return |
|---|---|
| Quantitative Directional | 7.48% |
| Energy/Basic Materials | 5.81% |
| Fundamental Value | 2.05% |
| Equity Market Neutral | 1.76% |
| Multi-Strategy | 0.79% |
| Technology | 0.55% |
| HFRI 500 Equity Hedge Index | 0.39% |
| Fundamental Growth | -2.21% |
| Healthcare | -7.23% |
The HFRI 500 Investors Guidebook identifies the Healthcare Index’s -7.23% as the lowest three-year return among the listed Equity Hedge sub-strategies. This period also illustrates why a short observation window and a longer annualized record can tell different stories: Technology led the one-year comparison, but Quantitative Directional led the three-year comparison.
Five-year and seven-year annualized returns
Over five years, Energy/Basic Materials was the strongest listed sub-strategy at 12.03%. Quantitative Directional returned 9.03%, Technology 7.93%, Fundamental Value 6.31%, and Fundamental Growth 5.74%. The broad Equity Hedge Index was 5.68%, while Multi-Strategy was 5.57%.
Equity Market Neutral recorded 2.93% over five years. Healthcare was negative at -0.70%. The five-year figures therefore preserve a substantial difference between the strongest commodity- and resource-linked category in this list and the weakest healthcare result, while the broad index remained positive at 5.68%.
The seven-year ranking is different. Technology led with an 8.01% annualized return, just ahead of Energy/Basic Materials at 8.56%? No: the supplied figures place Energy/Basic Materials at 8.56%, so Energy/Basic Materials is higher than Technology on this horizon. Quantitative Directional returned 6.96%, Fundamental Value 5.75%, and the broad Equity Hedge Index 4.85%.
Multi-Strategy was 4.25%, Fundamental Growth 4.17%, Equity Market Neutral 2.30%, and Healthcare 1.49% over seven years. The supplied seven-year values are therefore positive for every listed sub-strategy, although they vary materially by category.
| Listed Equity Hedge measure | 5-year | 7-year |
|---|---|---|
| Energy/Basic Materials | 12.03% | 8.56% |
| Quantitative Directional | 9.03% | 6.96% |
| Technology | 7.93% | 8.01% |
| Fundamental Value | 6.31% | 5.75% |
| Fundamental Growth | 5.74% | 4.17% |
| HFRI 500 Equity Hedge Index | 5.68% | 4.85% |
| Multi-Strategy | 5.57% | 4.25% |
| Equity Market Neutral | 2.93% | 2.30% |
| Healthcare | -0.70% | 1.49% |
The source’s five-year and seven-year observations should be read as annualized returns for those respective periods. They are not cumulative percentages. They also do not establish why any category performed as reported; the supplied facts provide performance measurements, not causal analysis.
Since-inception records
Since-inception annualized returns offer a longer reference period for the same listed measures. Technology had the highest reported since-inception return at 7.11%. Energy/Basic Materials was 6.95%, Quantitative Directional 6.78%, and Healthcare 6.46%.
Fundamental Growth returned 5.93% since inception, ahead of Fundamental Value at 5.48%. The HFRI 500 Investors Guidebook explicitly reports that the 5.93% Fundamental Growth figure was 0.45 percentage points above Fundamental Value’s 5.48%.
The broad HFRI 500 Equity Hedge Index recorded 5.43% since inception. Multi-Strategy was 5.16%, and Equity Market Neutral was 3.08%. The broad index’s 5.43% was 1.68 percentage points below Technology’s 7.11%, according to the supplied comparison in the guidebook.
| Listed Equity Hedge measure | Since-inception annual return |
|---|---|
| Technology | 7.11% |
| Energy/Basic Materials | 6.95% |
| Quantitative Directional | 6.78% |
| Healthcare | 6.46% |
| Fundamental Growth | 5.93% |
| Fundamental Value | 5.48% |
| HFRI 500 Equity Hedge Index | 5.43% |
| Multi-Strategy | 5.16% |
| Equity Market Neutral | 3.08% |
Since inception is not a single common calendar period stated in the supplied facts beyond the index labels. Readers should retain each index’s reported definition and avoid treating these observations as if every strategy began at the same time.
How the strategies compare
Across the supplied horizons, no single sub-strategy leads every period. Technology led the one-year comparison at 21.22% and the since-inception comparison at 7.11%, but Energy/Basic Materials was higher over five years at 12.03% and seven years at 8.56%. Quantitative Directional led the three-year comparison at 7.48%.
Healthcare provides the clearest example of horizon-sensitive results: -1.20% over one year, -7.23% over three years, -0.70% over five years, 1.49% over seven years, and 6.46% since inception. Fundamental Growth was also negative over three years at -2.21% but positive over five years, seven years, and since inception at 5.74%, 4.17%, and 5.93%, respectively.
For a broad long short equity reference, the HFRI 500 Equity Hedge Index reported 8.06% over one year, 0.39% over three years, 5.68% over five years, 4.85% over seven years, and 5.43% since inception. Those numbers summarize the index’s reported performance, while the sub-strategy figures show how widely outcomes differed within the listed Equity Hedge universe.
Source for all statistics: HFRI 500 Investors Guidebook, data as of 12/2024. The research is legacy research and was not independently verified.