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Alternative Market Briefing

PerTrac study reveals large hedge funds perform better in down years but small funds outperform generally

Tuesday, October 09, 2012

Beverly Chandler, Opalesque London: Latest research from PerTrac, provider of analytics, reporting and communications software for investment professionals, analyses the performance trends for hedge funds of all shapes, sizes and age from 1996 to 2011.

The sixth annual study, Impact of Size and Age on Hedge Fund Performance: 1996 - 2011, shows that the average large fund outperformed the average small fund in the negative performance years of 2008 and 2011. During the 41 months since 1996 in which hedge funds of all sizes posted negative performance results, the average large fund lost less than the average small fund in 61% of these monthly periods.

For the study, PerTrac defined hedge funds as 'small’ if assets are under $100m, 'mid-size’ if they sit at between $100 and 500m and 'large’ at over $500m. Data was drawn from 15 global hedge fund databases, drawn from eight data providers, including five 'dead’ head fund databases, and de-duped using PerTrac’s in-house analytics program, to underpin the study.

Findings included the fact that large funds dipped 2.63% on average in 2011, the least when comp......................

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