Goldman: Hedge Funds Trailing S&P500 By Wide Margin

May 22 2013 | 12:37pm ET

It's not exactly news, but hedge funds have been "lackluster" to say the least this year, according to a new Goldman Sachs report.

The average fund trails the Standard & Poor's 500 Index by about 10 percentage points, Amanda Sneider and David Kostin wrote. The former is up about 5.4% through May 10, and the latter 15.4%.

Hedge funds also badly trail the average mutual fund, which is up 14.8% during the period.

The "multi-year trend of lackluster hedge-fund returns continues in 2013," the analysts wrote. "Strong long performance was not enough to outweigh the drag from popular short positions," including Johnson & Johnson and Gilead Sciences.

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