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Any discussions of returns must necessarily consider the risk incurred to achieve that return.

• SilasX 11y ago
  Sure, but (by most metrics) hedge funds are going to be riskier/more volatile and you have to lock up your money for longer. So the same return would count as worse performance if placed in hedge fund (and that's not even accounting for differences in expenses yet).
  • beeboop 11y ago
    Hedge funds as a group are only risky and volatile compared to mutual funds. Their degree of riskiness varies tremendously, and there are a great number of them that would offering investment management that is tremendously less risky than an index fund.