Pivotal Point of View – December 2020




In aggregate, hedge funds finished the year up 11.7%, their highest annual return since 2013 (when funds were up 14.5%). Managers achieved these returns with a volatility of 11.13% to the S&P’s 25.95%, resulting in a Sharpe ratio of 1.04 to the S&P’s 0.71.

The graph above offers a sneak peek of our year-end hedge fund review. Unsurprisingly, there seems to be a relationship between performance and fund launches. Equity Sector tops both lists, accounting for 47% of the year’s total launches and returning 24.7%. The Equity Sector index also houses the year’s highest returning sub-strategy – Technology/Media/Telecom – which finished 2020 up 34.0%.

Also in this upcoming annual report, we’ll further break down the 2020 hedge fund landscape, offering additional detail about fund launches, closures/launches by strategy on a historical basis, and fund closure data with respect to AUM and track record length.

While we are happy to say goodbye to 2020 for so many reasons, for our firm, 2020 marked a year of growth. Our clients, whose roster expanded by 45% during the year, logged onto our research platform 11,808 times. Especially in this virtual world, allocators find the ability to leverage our research notes, fund presentations, data and analytics invaluable. This year, as a of result of conversations held with institutional managers on behalf of our clients, we added just shy of 1,000 meeting notes to the platform. If you’d like to learn more about how we partner with hedge fund industry professionals, please contact inquiry@pivotalpath.com



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