Pivotal Point of View – August 2024

For allocators evaluating hedge fund performance, context matters.

Key Takeaways:

• The PivotalPath Composite Index was up 0.8% in July and +6.8% YTD. The Index continues to generate positive alpha of 5.8% relative to the S&P 500 (S&P) over the last 12 months, even as equity markets were mixed in July and are broadly positive for the year.

• PivotalPath Index App
  • PivotalPath’s free Index App creates an accurate and common ‘performance language’ for hedge funds and allocators to better communicate. Click https://index.pivotalpath.com/ to access the app.
• Volatility at the end of July disrupted PivotalPath’s Global Macro indices, Managed Futures labored after a positive start to 2024, while a number of stock picking strategies continued to show their worth during a choppy period.
  • The PivotalPath Equity Sector: Financials Index led all indices in July returning an impressive 9.6%. Its 12.3% return YTD now ranks top across all PivotalPath indices.
  • As the ‘great rotation’ meant Financials surged, our Equity Sector: Technology/ Media/Telecom Index ended the month flat at 0.8%. Despite concerns over the financial viability of AI, the index recovered some ground by the end of month and is still up 10.6% YTD.
  • The PivotalPath Global Macro: Commodities Index was July’s biggest loser, down -2.1%, as many managers missed out on the bearish twist in commodities. The index is now flat YTD at 0.5%.