More than 90% of the Hedge Fund managers outperformed the global markets during March?
I 've been reading that more than 90% of the Hedge Fund managers outperformed the global markets during March? From the data that is publicly available, indeed most of the HF did outperform the markets, but what about the ones whose performance is private?
could you share sources please? I'm interested
Source here https://www.hedgeweek.com/2020/03/30/284305/long-volatility-and-tail-ri…
Aghh, the article says 90% of long vol and tail risk managers beat the market, not 90% of hedge funds - good thread anyway. These strategies act as a hedge against downturns and provide "crisis alpha" - I'm more surprised 10% of them managed to underperform the S&P (wtf??)
That is entirely not-shocking to hear. The average hedge fund has a beta of ~0.5. This implies that for every 1ppt move up or down in the broader stock market, the average hedge fund rises or falls 0.5ppts, because they are on average partially hedged to market moves. Thus, hedge funds will almost universally "under-perform" a bull market and "out-perform" in a bear market. It's just a function of their beta, and says nothing positive or negative about their ability to deliver alpha (true outperformance).
I’m sure Bridgewater isn’t on the list. Just saw an article of them accepting new money.
Depends on what you use for “the market”. If you use the s&p it is down 20% this year, so “beating the market” doesn’t take much. As another person said, most hedge funds will outperform in times like these (and underperform during strong market rallies) if you use the s&p as your comparison point, especially since many funds trade global assets.
I can't tell you much about March yet but I have access to a database where around 5400 hedge funds report monthly performance. 84.97% of HFs on the list beat the S&P 500 YTD as of 28 Feb 2020.
Lmk if you are interested in how a specific strategy performed and I'll post it - can update March once that's finalised too. I'm not naming individual funds or DMing the database - too much risk for a couple of bananas.
hsbc report?
Nah - one of the databases you pay for, similar to those david.richards mentioned in his comment
The problem is that the publicly available sources of performance are very few. One can check - need subscription for details: a) Eurekahedge b) HFM Global c) Preqin
I also have an account at Daedalus. This is actually an investment platform, but it has a few Hedge Funds I didn't know before, which are doing impressively well YTD (there everyone outperformed the market).
The daedalus platform is a scam, best to stay away
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