Hedge Funds Protect Against Major Market Losses – PivotalPath Composite Index Outperformed BY 8.5% Relative To The S&P – The 8th Largest On Record Dating Back to 1998
PivotalPath has released their monthly report, the Pivotal Point Of View, which measures performance among more than 2,400 institutionally-relevant hedge funds, as well as 40+ different hedge fund strategies and $2.5T in total industry assets. The big takeaway so far: despite a sea of red, hedge funds continue to outperform the broad market indices and maintain a historically low beta to the S&P 500.
Q1 2022 hedge fund letters, conferences and more
- The PivotalPath Composite Index continues to diverge from traditional asset classes. Its 12-month beta of 0.11 to the S&P 500 is the lowest since December 2017 and the 2nd lowest since November 2003.
- The Composite’s monthly outperformance of 8.5% relative to the S&P 500 is the 8th largest on record dating back to January 1998 which spans 192 months.
- Dispersion across all funds level remains elevated at 5.7%; prior to the volatility brought on by Covid in February of 2020, that would have been the highest print since the tail end of the financial crisis in 2009.