One of the touted benefits of hedge funds is that they provide returns that are largely uncorrelated with other risky assets. So, while their returns are lower than equities, they improve the risk-adjusted return of a portfolio as a whole. We can expect them to zig when the equity market zags.

Against that backdrop, it would be fair to say that the March 2020 quarter was a huge disappointment for the hedge fund industry as a whole.

The main way farrelly’s assesses hedge funds as an asset class is by looking at the returns produced by the average Hedge Fund of Funds ...