The brutal March that battered some of the world’s biggest hedge funds is already fading into the background as the firms reported their strongest first-half results in five years.
Many firms were buoyed by their tech-focused bets and rode the wave in chip stocks that notched their best quarter ever in recent weeks. Others minted billions off a series of moves that were especially beneficial to index-rebalancing strategies, such as the fast-tracking of SpaceX onto Nasdaq Inc. and FTSE Russell benchmarks.
Since January 2020, hedge funds have compounded at 8.5%, according to PivotalPath.
“This consistency in performance is why they are seeing renewed appetite for hedge funds now, especially with issues in private equity and credit,” PivotalPath head Jon Caplis said.