The S&P 500 returned 32.4% in 2013, which proved a tough benchmark to beat.
According to data from Goldman Sachs' Amanda Sneider, the average core large cap mutual fund came close returnin 31.6% in 2013.
But hedge funds only returned a measly 9.8% on average in 2013.
Much of this underperformance can be blamed on short positions in these funds. In fact, a basket of hedge funds' "Very Important" long positions returned a whopping 41%.
Check out the distribution of hedge fund performance from Goldman Sachs:
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