This article comes fromThe Block, Originally by Frank Chaparro

Odaily Translator | Nian Yin Si Tang

Summary:

This article comes from

, Originally by Frank Chaparro

Odaily Translator | Nian Yin Si Tang

secondary title

Summary:

- Overall, hedge fund returns have underperformed the broader market in 2021.

- According to HFR data, crypto funds are doing better.

The sharp rise in stocks in 2021 hasn't translated into outsized returns for some of the world's largest hedge funds, but their cryptocurrency counterparts have been able to generate returns that beat stock and digital asset indices.

Overall, hedge funds managed to eke out a return of just over 10% last year, underperforming the S&P 500's return of 26.9% and underperforming hedge funds overall in 2020. The lagging performance of hedge fund managers has to do with their underexposure to big tech companies such as Apple (AAPL) and automaker Tesla (TSLA), which delivered eye-popping returns in 2021.

Even top hedge funds like Ken Griffin's Citadel are performing in line with the broader market. According to Bloomberg News, Citadel delivered a 26% return in 2021.

The situation is different for cryptocurrency funds, according to data provided by Hedge Fund Research. According to the firm’s crypto index, crypto hedge funds will return an average of 214% in 2021. Aside from the 2017 boom cycle, this was the best performance by a crypto hedge fund since the firm began tracking in 2015.