The state pension fund posted a 13.9 percent gain for 2012, beating its benchmark by 0.84 percent.
Fixed income and global equities had strong results, with double digit returns, the Massachusetts Pension Reserves Investment Management Board said Tuesday. (The board, which manages the state pension fund, is also known as PRIM.)
Hedge funds fared well, up 8.4 percent, versus a 4.8 percent benchmark, PRIM said.
Total assets in the fund closed the year at $51.9 billion, up from $47 billion at the start of the year.
The pension fund board also said it filled the last of a number of vacancies, hiring Michael Bailey as private equity chief. He comes from High Vista Strategies in Boston.
The state fund said it would invest up to $60 million in a new fund being raised by Battery Ventures in its Fund X. The fund is raising $650 million, plus a $250 million side fund.
In addition, the state plans to invest $25 million with Spark Capital, a venture firm run by former Battery partner Todd Dagres.