It’s no secret by now that hedge funds largely failed their investors last year, dropping about 5.26 percent on average, according to Hedge Fund Research.

Perhaps more interesting, however, is how concentrated this lousy performance was last year.

HFR found that the gap between the group of top performers and worst performers was its narrowest in years.

The hedge fund scorekeeper points out in a detailed analysis of 2011 performance that hedge fund dispersion in 2011 shrunk to its lowest level since 2006.

What exactly does this mean? The Chicago firm breaks  into 10 groups the performance of the funds that report to its database.