The global hedge fund industry generated net returns of 8.27% in 2004, according to the Hennessee Hedge Fund Index, one of the seven most popular indices.

Hedge funds were beaten by the S&P500 index with dividends, which generated 10.87%; the Nasdaq Composite index, with 8.6%; the MSCI Europe, Australia and the Far East US dollar index, which generated 17.59%; and the Russell 2000 index, with 18.32%.