Rotation From Growth To Value Continues And Hedge Funds Largely Meet Expectations – ValueWalk Premium
Cubic Corporation Chris Hohn favorite hedge funds

Rotation From Growth To Value Continues And Hedge Funds Largely Meet Expectations

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 biggest takeaways?

Q4 2021 hedge fund letters, conferences and more

Cubic Corporation Chris Hohn favorite hedge funds

While value outperformed growth in 2021 for the first time in 5 years, the trend continued into January – in full force. Growth sectors such as technology and biotech saw significant losses in January along with small-caps. Additionally, while the PivotalPath Composite Index – a broad measure of overall hedge fund performance – lost a modest 1.3%, dispersion by strategy remained historically wide Our Dispersion Indicator registered at 6.3%, which is the third highest month since April of 2009.

Quick Highlights

Below are a few quick highlights.

  • Outside of commodities and the value factor more generally, there were very few bright spots in January, as the significant equity selloff was broad across most sectors and geographies.
  • With heightened volatility, exemplified by the +40% rally in the VIX, Multi-Strategy managers performed well yet again, with the Index generating a gain of 0.5% while maintaining a near zero beta to the S&P.
  • Systematic strategies including Macro, Managed Futures, and Equity Quant were able to capitalize on the flattening yield curve, rally in the energy complex, and other factor trends, all of which are trends that are at least a year in the making.


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