The Gap Between the Best and Worst Hedge Fund Strategies Just Widened


If you are a hedge fund investor experiencing wildly different returns in 2022, you’re not alone… AsJon Caplis shares withJulie Segal ofInstitutional Investor,PivotalPath indexes are showing the best year in decades for some strategies such as Managed Futures and the worst for others such as Equity Sector. If it’s not an illusion, what’s the reason?

As Jon notes, “to understand the big picture of hedge fund performance and alpha, it’s important to think about the role of dispersion, which occurs when asset classes behave differently from one another. Hedge fund managers, like all active investors, need some level of dispersion in order to outperform peers.” In March, the PivotalPath Composite Index’s dispersion was at 5.1 percent, roughly double the 10-year historical average. Looking back over the past 12 months, cumulative dispersion has created the extreme performance differential between strategies such as managed futures and equity sector.

Click below for the full article


Interested in actionable hedge fund data 
and industry–leading research?

We provide transparency for Allocators.

Get Started