One-year net return on hedge funds worldwide 2023, by investment strategy
As of 2023, hedge funds following an arbitrage strategy had the second-lowest net returns over a one-year period. This form of investment strategy seeks to benefit from mispricings of the same asset or a similar financial asset. Hedge funds generating the lowest one-year return were those that followed a quant strategy, generating net returns of 1.47 percent. Hedge funds following this strategy trade securities based on the buy/sell decisions of computer algorithms.