Pivotal Point of View – June 2024

For allocators evaluating hedge fund performance, context matters.

Key takeaways:

• Hedge funds appreciated in May alongside global equity markets. Economic data continues to drive markets with historically low unemployment and stable/slowly declining inflation. The benign data gave markets the fuel to resume their pre-April trajectory.
• The PivotalPath Composite Index appreciated 1.1% in May and is up 6.1% YTD. The Index continues to generate positive alpha of 6.3% relative to the S&P 500 (S&P) over the last 12 months, even as equity markets declined in April and recovered in May.
• Hedge funds are experiencing a period of strong performance. The PivotalPath Composite Index is now in the 90th percentile of all 12-month rolling periods dating back to 2014.
• Hedge funds continue to produce positive Alpha with Managed Futures, Global Macro and Credit continuing to produce the highest Alpha on a rolling 12-month basis.
• Smaller funds outperformed larger funds in May due to equity concentration in funds under $100mm.

Download the full report for graphics and deeper discussion.