Are market-neutral hedge funds (Point72, Citadel) the place to be for 2022 and beyond?
It's starting to look like this year will be the start of a long-term trend of low equity returns. With the expected returns of the S&P slowing down (I think consensus for 2023-2030 is 4% annually), it follows that high beta strategies such as private equity and the tech factor investing used by Tiger Cubs have been/will be hit the hardest compared to their performance since the Financial Crisis.
Market-neutral is what LPs want now. We're already seeing this in the last batch of 13F filings: record inflows into multi-manager hedge funds + relative outperformance to the S&P, record outflows out of Tiger Cubs + average Tiger Cub return in past 4 quarters is around negative 30-40%.
Anyone else seeing the narrative starting to change?
The consensus is that S&P will grow at a rate of 1/3 the average from 1957-present for the next seven years? That sounds a little low, but I can understand why. Do you have a source?
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Bump
You think the funds can consistently give 10%+ returns regardless of market regime will attract more interest than the levered tech beta that’s down 50%? Who would’ve thought!
What are the hours at those funds ?
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