Hughes, who is preparing to return to Craven Cottage with Stoke this weekend, said: "I left under something of a cloud.
"At the time I made the decision to leave because, given what I knew and what I thought was going to happen in the future, I couldn't commit to a new contract.
"I made the decision to leave but, with hindsight, it was probably the wrong decision.
"When I was there I had a few doubts over what kind of investment would be made available to strengthen the team. I interpreted that as maybe the club didn't want to keep on progressing.
"Obviously, almost immediately after I left they started investing in good players and spending some money, so I probably got that wrong."
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