Larger Hedge Funds Outperformed In AugustJacob Wolinsky
According to the latest research from PivotalPath, hedge funds stay the course, but in a reversal from the norm, larger funds outperformed in August.
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. What were some of the big findings this month? For one, hedge funds continued to do well – especially on a risk-adjusted basis – and some of the largest funds were the best performing.
A Few Quick Highlights
- Everything went up in August – including both the U.S. Cyclical Sectors Basket AND the U.S. Growth Sectors Basket, which generated positive returns of 1.5% and 2.6% respectively.
- Within equity sector, of the sub-indices contributed positively, which has been quite rare in the battle between value focused sectors such as Financials, Consumer and Energy, relative to growth-oriented sectors in Healthcare and Technology.
- TMT returned 2.4%, even as our Social Distance Winners Basket fell 2% (though is still up 15.5% YTD). Strong returns from PivotalPath’s FAANG Basket (+6%) and SaaS Basket (+4%) helped lead the long bets higher.