Expectations for hedge fund performance in 2023 look similar to 2022's results, although with slightly higher returns expected. : It's been a challenging year for virtually all asset classes, including most alternatives. Although many hedge funds were in the red for 2022, much of the industry demonstrated their value to investors by protecting their capital. Expectations for hedge fund performance in 2023 look similar to 2022's results, although with slightly higher returns expected. In their "2023 Long-Term Capital Market Assumptions," JPMorgan Asset Management said they have "moderately" increased their projections for hedge fund returns in 2023.