2024 Preqin Awards Hedge Fund Performance Methodology

Preqin's proprietary methodology showcases the top and most consistent industry performers.

Hedge Fund Performance

Eligibility requirements

• Fund profile must be visible on Preqin Pro. 

• Fund profile status must be ‘Active’. 

• Completed three years’ worth of Monthly Return Track Record as of December 31, 2023.

• Fund AUM of at least $300mn.

• Fund Auditor tagged onto the relevant profile.

• Fund Administrator tagged onto the relevant profile.

Ranking criteria

• Percentile rank each fund by each of the metrics listed below. Those with the highest score receive the best rank for that metric.

  • Annualized Return – 3-Year

  • Annualized Volatility – 3-Year

  • Sortino Ratio (MAR = 2.0%) – 3-Year

  • Maximum Drawdown – 3-Year

  • CVaR – 3-Year
    

• By weighting equally an Overall Score is calculated as an average across all the ranking criteria.

• Fund with the highest Overall Score is determined as the winner of this category.

Data review process

• Winners and shortlisted funds were identified to perform a final review of all relevant data points on firm and fund profiles, in addition to attempted direct outreach with each Hedge Fund Manager to confirm data accuracy.

• For all Hedge Fund Performance Preqin Awards, the aim was to verify the following:

  • AUM track record

  • Fund auditor

  • Fund status

  • Fund structure

  • Fund strategy

  • Registration with Regulator within Local Jurisdiction

FAQs

When was the performance data extracted?

• Performance data was extracted from Preqin Pro in early May 2024.

What was the timeframe for consideration?

• Completed 3-Years’ worth of Monthly Return Track Record as of 31st December 2023 along with the additional eligibility requirements listed above.

Was there a fee required to participate in the Preqin Awards?

• No, all firms and funds that met eligibility requirements were considered for the Preqin Awards free of charge.
  

Additional questions?

Reach out to Preqin's hedge fund performance team at hfperformance@preqin.com.