How Did Hedge Funds Perform in 2023?

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Hedge fund research

How did hedge funds perform in 2023?

The PivotalPath Composite Hedge Fund Index returned 7.6% in 2023. Equity Sector leads at 15.0%; Managed Futures is weakest at -2.2%.

7.6%
Composite
15.0%
Equity Sector
-2.2%
Managed Futures
26.3%
S&P 500

2023 calendar-year figures, as of August 2026.

2023 returns by strategy

2023 calendar-year returns are cumulative within the year, not annualised, and are therefore not comparable figure-for-figure with the annualised columns beside them.
Index 2023 3y ann. 5y ann. Volatility Correlation to S&P
Equity Sector 15.0% 20.0% 9.0% 8.4% 0.72
Equity Diversified 11.0% 13.6% 7.9% 7.0% 0.81
Credit 8.5% 8.4% 6.5% 4.9% 0.52
Composite 7.6% 11.0% 7.2% 4.8% 0.62
Equity Quant 7.6% 10.6% 9.4% 4.5% 0.42
Event Driven 7.2% 11.4% 6.6% 6.9% 0.66
Multi-Strategy 5.9% 10.3% 7.5% 4.2% 0.48
Global Macro 1.1% 7.6% 7.0% 5.9% 0.04
Volatility Trading 0.9% 3.7% 4.4% 5.0% -0.20
Managed Futures -2.2% 3.2% 4.7% 9.3% -0.16
S&P 500 Total Return 26.3% — — — —

What happened

The S&P 500 total return was 26.3% over the same period, so the Composite finished behind the market. The spread between the strongest and weakest strategy was 17.1% — which is the figure an allocator selecting between them is exposed to.

A single calendar year is a short window and says little about a strategy’s long-run behaviour. The since-inception figures are on each index page.

Returns by year, every year

Returns are monthly, net of all fees, in USD. The complete return history is published free under a Creative Commons Attribution licence at github.com/pivotalpath/publicdata, and the full construction methodology — including the treatment of selection, survivorship and backfill bias — is in the index methodology. Past performance does not predict future returns.

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