Returns across hedge fund asset class were +16.63%, ahead of the S&P 500 PR Index (16.26%), resulting in the asset class' highest annual return since 2009, said Preqin.

"In 2020, the Preqin All-Strategies Hedge Fund Benchmark return was +16.63%," said the report.

Hedge funds also offered downside protection through lower levels of volatility over 2020 compared