Insights
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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.
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Pivotal Point of View – January 2020
The PivotalPath Hedge Fund Composite Index started the year up slightly, returning +0.3% in January. Across the fund universe, there was fairly wide dispersion between top and bottom performers for the month, with 1st quartile managers up +4.0% and 4th quartile managers down -4.0%, on average.
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Pivotal Point of View – December 2019
The PivotalPath Hedge Fund Composite Index finished 2019 up 8.8%. Equity Sector (+15.6%) and Equity Diversified (+12.7%) led the way, while Credit (+4.1%) trailed the pack. In addition to generating the best performance in 5 years, all strategies generated significant alpha in 2019.
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Hedge Fund Launches & Liquidations – A More Accurate Picture
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 – November 2019
In November, hedge funds were up across most strategies. Two indices in particular, Equity Diversified (+11.0%) and Equity Sector (+13.0%), crossed into double-digit returns for the year.
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Lack of Liquidity in Japan
A lack of liquidity lurks beneath the bullish case for investing in Japan. The question is, is this liquidity crunch temporary or structural?
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Singapore: The Next Hedge Fund Hub of Asia?
On a recent research trip, we learned firsthand how the 2019 Hong Kong protests could shape Singapore’s future as the next financial hub of Asia.