Hedge funds search for trades in dead-heat US election

With election day finally here, many hedge funds have been focused on other more concrete trends, as the race has been impossible to predict. But it’s worth noting how the industry has performed coming into the election.

As we noted in a recent conversation with Carolina Mandl of Thomson Reuters, the PivotalPath Composite Index gained 8.3% in the first nine months of the year. This compares to the S&P 500’s 20% move higher.

Jon Caplis shared that based on conversations with numerous managers, he expected some selling ahead of the election. “They could bank those returns, and then they could wait for weeks or months, depending on how long it takes before things become clear again.”

Check out more in the link below!