While the S&P 500 rewarded investors with a 32.4% return in 2013, hedge funds investors got 9.8%, says Business Insider.
Read: Despite a proven edge, women are rarely hedge fund managers
Most of the underperformance is from short positions the funds held, says BI. Had the funds stuck only with long-term positions, they would have returned 41%.
Even the average mutual fund, with a return of 31.6%, outstripped hedges, which can be riskier for hedges.
Read more here.
Also read: