Insights
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Hedge Fund Launches & Liquidations in 2020
When it comes to hedge fund launches and closures, the right questions and the right data can tell a very different story.
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Pivotal Point of View – December 2020
The PivotalPath Hedge Fund Composite Index was up 4.3% in December, with 95% of funds reporting positive performance. 74% of managers ended 2020 in positive territory, with the Composite up 11.7% for the year.
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Pivotal Point of View – November 2020
November was a big month for markets, with the S&P 500 up 10.7%. In aggregate, hedge funds were up 5% for the month with 86% of managers reporting positive performance. YTD, hedge funds are up just over 7% and continue to deliver better risk-adjusted results than the S&P, as indicated by their respective Sharpe ratios, 0.70 vs. 0.57.
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How Do Hedge Funds Perform in Times of Divided vs. Unified Government?
How could Georgia’s upcoming run-off election, which will determine control of the Senate, affect hedge funds over the next congressional term?
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Pivotal Point of View – October 2020
For the year, hedge funds are outpacing the S&P 500, the former up 2.0% and the latter up 1.2%. Specifically, in October, the S&P was down 2.8% while the PivotalPath Hedge Fund Composite Index, which is asset-weighted across high-level strategies, was flat. At the fund-level, 55% of managers reported positive performance for the month.
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What Happens to Hedge Fund Performance on Either Side of an Election?
We take a look at hedge fund trends historically, both prior to and following U.S. presidential elections.
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Pivotal Point of View – September 2020
High-level strategies performed within 220 bps of each other in September, ranging from down 1.2% (Managed Futures) to up 1.0% (Event Driven). YTD is a different story, with almost 14% separating the top, Equity Sector up 10.3%, from the bottom, Managed Futures down 3.4%. Interestingly, our Composite’s dispersion is 2.8% for the month, just below the long-term average (2.9%).
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Pivotal Point of View – August 2020
Hedge funds were up broadly in August, led by equity-focused managers and multi-strategy funds. Managed futures lagged on both a monthly and YTD basis.
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Pivotal Point of View – July 2020
Hedge funds were up broadly in July, with the exception of Healthcare (down 1.3%). YTD, hedge fund performance has been slightly positive, with the PivotalPath Hedge Fund Composite returning 0.6% through month end.
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Pivotal Point of View – June 2020
Hedge funds were up broadly in June, with the exception of Risk Premia (-2.1%) and Managed Futures (-1.2%). YTD, hedge funds have outpaced the S&P 500 (-4.0%) as the PivotalPath Hedge Fund Composite Index returned -1.3% through month end.
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Pivotal Point of View – May 2020
Broadly, hedge funds were up in May, with the exception of Risk Premia (-1.4%) and Managed Futures (-1.0%). YTD, hedge funds continue to outpace both the Dow (-11.1%) and the S&P (-5.0%), as the PivotalPath Hedge Fund Composite Index returns -2.6% through month end.
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Is There a “New Normal” for Hedge Funds?
CEO Jon Caplis joined Winged Keel for a discussion about the evolving role of hedge funds in asset allocation.
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A Tale of Two Months
March peformance was largely driven by quality. But April was all about that beta.
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Market Performance During the Pandemic
Utilizing PivotalPath’s proprietary Social Distance Winners & Losers Baskets, we analyze whether the stay at home stock rally is temporary or here to stay.
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Pivotal Point of View – April 2020
Hedge funds were up across the board in April, though less than broad market indices. YTD, hedge funds continue to outpace equity markets, with the PivotalPath Hedge Fund Composite returning -4.3% while the S&P is down more than twice that, returning -9.9% through month end.
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Investing in “Quality Time”
In our latest insight, we look into recent outperformance of the quality factor and how it may affect a manager’s investment approach.
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Pivotal Point of View – March 2020
March was a volatile month due to the coronavirus pandemic and oil price war. All things considered, hedge funds held up relatively well in this environment, with many faring better than broad market indices
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Risk Premia in 2020
Risk Premia was one of the worst performing strategies through February in 2020. We look at why, and how we expect the strategy is performing in March (updated 3/24/20).
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Pivotal Point of View – February 2020
In the face of the worst month for global markets in almost ten years, hedge fund performance held up relatively well in February. Additionally, all strategies generated positive alpha for the fourth consecutive month.
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Questions Every Allocator Should Ask a Manager about ESG
While ESG is a popular topic for discussion, there is not a lot of agreement when it comes to investment standards. We highlight some questions investors should be asking hedge fund managers to get beyond the buzzwords and into the details.
