The average return of 8.5% looks good on the surface… but…

Hedge fund returns in 2019 averaged 8.5% but fell well short of the broader market rally.

Heading into Monday, the S&P 500 has gained 29.1%. HFR says that the firm reached 8.5%, a figure that was even well short of the U.S. Bond Market’s gain of 14.5%.

Hedge Fund Returns and Key Departures

The Financial Times reports that a number of different hedge funds are poised for double-digit gains, although the bulk trailed the Index.

• Citadel, the hedge fund of Ken Griffin, was up 16.7% as of November.
• Steven Cohen’s Point72 Management showed gains of 13.3% last month.
• Izzy Englander’s Millennium was up 8.1%

We previously noted that Bill Ackman’s Pershing Square Capital is on pace to surpass 50% returns this year. In addition, Mudrick Capital Management – which owns a big stake in Juul – will likely close out the year up 20% – net of fees, according to FT.

Meanwhile, 2019 has experienced a significant number of high-profile departures from the hedge fund industry. This year, Louis Bacon announced plans to shutter Moore Capital. Marcato announced plans to return money to investors. And Jens-Peter Stein and Kornelius Klobucar will shut down Stone Milliner.

The 2019 hedge fund returns and manager departures come at a time that new hedge funds struggle to get off the ground. HFR announced last week that 2019 saw new launches fall to levels not seen since 2008.

Related: Pershing Square Capital Boosts Stake In Howard Hughes