PivotalPath’s hedge fund composite returned 5.3% in the third quarter.
By comparison, the S&P 500 climbed 14.8% year-to-date through September, while the Nasdaq gained 17.3%. Emerging markets surged 27.5%, propelled by a 42% rally in China’s MSCI index.
Rising beta in event-driven strategies tests hedge fund alpha
Correlations to the S&P 500 reached near-record levels in certain strategies over the past 12 months, including event-driven funds at 0.99 and diversified equity funds at 0.96, compared with a historical mean of 0.79, according to PivotalPath.
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