Pivotal Point of View – December 2019



  • How did hedge funds actually perform last year? In our view, more positively than many have reported. We recently published an insight on 2019 launches & closures that paints a different picture than what many have seen covered elsewhere.

  • In addition to strong annual performance, all strategies generated significant alpha vs. the S&P in 2019. It is this ability to generate alpha that attracts institutional investors to the hedge fund space – this past year, managers delivered.

  • On another encouraging note, our CEO recently spoke with Pensions & Investments about the positive implications of rising dispersion for hedge fund performance in 2020. 

  • The high-level indices cited in this monthly report are comprised of over 40 sub-strategies. On that more specific level, the top 3 performers for 2019 were Healthcare (+25.1%), Financials (+16.1%) and U.S. Long/Short Equity (+15.1%). Conversely, the bottom 3 sub-strategies for 2019 were Distressed Credit (+1.0%), Multi-Strategy Credit (+3.9%) and Quantitative Global Macro (+4.4%). For access to sub-strategy indices, please contact inquiry@pivotalpath.com.

  • Overall, 2020 is off to a fast and furious start. In the coming weeks, the research team plans to attend Morgan Stanley’s Annual Hedge Fund Forum at Breakers as well as JPMorgan’s Rising Stars Hedge Fund Forum. Additionally, our Head of Research Mark Doherty will be speaking about investment opportunities in China at an event co-hosted by 2 clients, KraneShares and Brown Advisory. PivotalPath’s CEO Jon Caplis is due to speak at the Defined Contribution Alternatives Association quarterly meeting in early February.

For access to performance data, our proprietary alpha rankings and additional commentary, please download the full report.


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