Hughes, who left Blackburn for City, returns to Ewood Park with his unbeaten Fulham side today.
Allardyce said: "His Manchester City reign obviously was not long enough. A little bit like me at Newcastle, but I didn't last quite as long as Sparky though.
"He was given the chance and unfortunately at that stage of his career they decided to have a change.
"You look back on it and he'll be very disappointed because they only lost two games, I think. But that's the way it is sometimes.
"There's a perception that other people can do better than you, but often that is not the case.
"He decided that Fulham was the place for him. He's taken over what he's described as a very good team and he's started where they left off last season."