Pivotal Point of View – October 2024

For allocators evaluating hedge fund performance, context matters.

 Pivotal Points: 

• Hedge funds continue to deliver. Since January 2020, the PivotalPath Composite Index has annualized returns of 7.8%, with a Sharpe Ratio of 1.64, while most importantly, generating alpha of ~6.4% per annum (with a beta of only 0.12). 
  • For perspective, the S&P 500 annualized 14.5% over the same period, but with more than 3x the volatility, less than half the Sharpe Ratio (0.8) and 4x the drawdown. 
• PivotalPath Index App
  • PivotalPath’s free index license creates an accurate and common ‘performance language’ for hedge funds and allocators to better communicate.
  • Click https://index.pivotalpath.com/ to access the index app and its best-in-class data.
• In global equity markets, after an initial early month selloff, the S&P 500 set a new all-time high on September’s final day of trading. The month’s solid performance rewarded PivotalPath’s equity specialists, with robust returns.
  • YTD the PivotalPath Equity Sector Index remains the strongest of our main hedge fund indices, up 13.0%, only narrowly shading out the PivotalPath Quant Equity Index, which is 12.9% across 2024.
  • At a sub-index level, the late-September announcement of the Chinese government’s $1 trillion stimulus package created a surge in the PivotalPath Equity Diversified:Asia Long/Short Index, which finished +6.8%, the month’s best performing index.