Pivotal Point of View – October 2019

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Highlights:

  • Many hedge funds had a challenging start to October but, by month end, the majority recovered their losses and finished in flat to positive territory. For the second time this year, alpha across strategies averaged more than 2.0% (August being the first).

  • Throughout the third quarter, we observed unusually high correlations when comparing hedge fund strategies to more than 200 global risk factors. This past month, those levels have started to come down. What could this mean for investors? As correlations decrease and dispersion increases, manager selection will matter more than ever. Find out more in our upcoming report!

  • Also upcoming, we are excited to let you know that historical data for core PivotalIndices will be available on Bloomberg in the next few weeks. Please look out for the official notice, coming shortly. By leveraging our indices, which are far more representative of industry performance than existing standards, investors are able to derive their own insights, in addition to the ones seen here each month.

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

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