6 April 2023 - Funds of Hedge Funds serviced by the Citco Fund Services Companies delivered a weighted average return of -3.35% for 2022. Seen in the context of performance of both the broader markets and the alternatives space, this indicates the strategy offered a good deal of downside protection versus the double-digit declines seen in many major asset classes last year. The weighted average return overall was also ahead of the median return of-3.53%, suggesting better performance from larger funds.
After experiencing an especially challenging first half of the year, the latter two quarters told a marginally better story. The average return stood at -5% at June 30 but the second half of the year was a positive one.
These are some of the findings from Citco’s 2022 Fund of Hedge Fund Update, which explores the data behind the sector’s performance.
![Fo F report a year in review 2022](https://www.citco.com/uploads/images/insights/_729xAUTO_crop_center-center_none/FoF-report-a-year-in-review-2022.png)