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Komfie Manalo, Opalesque Asia:

An analysis of alternative money managers with aggregate assets of $1.1tln has shown that hedge funds across the globe outperformed stocks and bonds on a risk-adjusted basis last year.

That was the finding of global hedge fund industry trade association the Alternative Investment Management Association (AIMA), which said that hedge funds returned an average of 2.42% in 2015, compared to the S&P 500 which gained only 1.38% and the Barclays Global Aggregate Bond Index which declined -3.15% during last year. The MSCI ACWI was down -0.87% with a Sharpe ratio of -0.09.

The report said that AIMA based its on Sharpe ratio to compute risk-adjusted performance over 2015. It found that hedge funds produced a Sharpe ratio of 0.52, outperforming the S&P 500's 0.08 and -1.13 for the bond index.

"While 2015 will not be remembered as a vintage year for the industry, the majority of hedge funds still produced positive returns amid challenging market conditions, beating stocks and bonds on both an absolute and risk-adjusted basis and preserving capital for pension funds and other investors," said Jack Inglis, CEO of AIMA, in a statement.

"Given that this period of market volatility is set to continue during 2016, we remain confident that hedge funds will continue to meet their investors' expectations for competitive, diversified and low-volatility returns," he added.

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