Hedge Funds Gained 0.3% So Far In Q1

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PivotalPath has released their monthly report, the Pivotal Point Of View, which measures performance among more than 2,400 institutionally-relevant hedge funds, as well as 40+ different hedge fund strategies and $2.5T in total industry assets. What were some of the biggest takeaways for Q1 so far?

Q4 2021 hedge fund letters, conferences and more

We continue to see the rotation from growth to value as inflation, volatility, and Ukraine/Russia dominate, but interestingly, the small cap (size) factor saw outsized performance in February, being up +1.9% and +1.7% YTD. The “Value over Growth” spread is now 13.5%. Additionally, the best returns we saw came from Multi-Strat, Managed Futures, Global Macro and Credit, as Commodities, especially oil, reached fresh highs not seen in a decade.

Below are a few quick highlights.

  • The PivotalPath Composite Index, a broad measure of overall hedge fund performance, gained 0.3% – outperforming most major indices
  • PivotalPath’s Dispersion Indicator decreased in February to 3.8%.
  • The “Value over Growth” shift continued in February with the PivotalPath proprietary Cyclical Sectors Basket outperforming the Growth Sectors Basket by 4.2% in February. Through February the spread is now 13.5%. In addition, the small cap (size) factor performed well in February (+1.9%) and YTD (+1.7%).

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