Hedge Funds Outperformed The S&P 500 On A Risk-Adjusted Basis In JuneJacob Wolinsky
PivotalPath has released their monthly report, the Pivotal Point Of View, which measures performance among more than 2,000 institutionally-relevant hedge funds, as well as 40+ different hedge fund strategies and $2.3T in total industry assets. As we discuss in the report, the big story this month was the growth of credit, and gains in the hedge fund composite index more broadly.
A few quick highlights.
- 2021 Leaderboard – If the year ended here, Credit would produce its best year since 2016 led by Distressed +15% and Credit Multi-Strat +9.4%. Equity Diversified continues to do well generating 9.3%.
- Turnaround Stories – Equity Quant generated 6.4% through mid-year which would be its best full year calendar year performance since 2017. Risk Premia has also experienced a significant turnaround gaining 8.5% after losing 11.3% in 2020.
- Risk Subsidies! – Using a rolling measure of volatility, The PivotalPath Composite Index peaked at 11% in December 2020. It has since fallen back to roughly half that value at ~5.5%, much closer to its historical average. The monthly PivotalPath Dispersion Indicator, after hitting an all-time high in March of 2020 of 11.7%, fell back to its 10-year monthly average of ~3%.