That aligns with what I said, although there are plenty of private hedge funds that don't report their returns. The benefit varies for each client.
An example would be a real-estate company that has holdings in a fund. Preservation and low volatility is far more important than raw gains and can be used as collateral to offset losses in physical property valuations.
Hedge funds have only outperformed the market twice since 2008.
Once was during the financial crisis of 2008 (-19% vs -37%) and once was 2018 (-4.07 vs -4.38).
It's unclear what benefits you are getting here.