The Dramatic Effect Of Interest Rates On Hedge Fund Performance

Interest rates inform a significant portion of the news coverage we consume – and for good reason. As the fundamental building blocks of financial valuation, they affect the performance of the stock and bond markets, savings rates, mortgages, and many other aspects of our lives.

Importantly, they also significantly impact hedge fund performance and not necessarily in all of the ways you might expect. In building trust and partnerships with both hedge funds and institutional investors, PivotalPath has developed a comprehensive (>$2.5tn in hedge fund AUM) and representative set of hedge fund data, creating a unique window into evaluating strategy performance across various regimes.

This analysis is the first of a series where PivotalPath will parse hedge fund performance under various macroeconomic regimes, considering inflation, interest rates, and markets among other macro variables.

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