PivotalPath has released their monthly report, the Pivotal Point Of View, which measures performance among more than 2,000 institutionally-relevant hedge funds, as well as 40+ different hedge fund strategies and $2.3T in total industry assets. As we discuss in the report, the big story this month was the growth of credit, and gains in the hedge fund composite index more broadly.
Q2 2021 hedge fund letters, conferences and more
A few quick highlights.
- 2021 Leaderboard - If the year ended here, Credit would produce its best year since 2016 led by Distressed +15% and Credit Multi-Strat +9.4%. Equity Diversified continues to do well generating 9.3%.
- Turnaround Stories - Equity Quant generated 6.4% through mid-year which would be its best full year calendar year performance since 2017. Risk Premia has also experienced a significant turnaround gaining 8.5% after losing 11.3% in 2020.
- Risk Subsidies! - Using a rolling measure of volatility, The PivotalPath Composite Index peaked at 11% in December 2020. It has since fallen back to roughly half that value at ~5.5%, much closer to its historical average. The monthly PivotalPath Dispersion Indicator, after hitting an all-time high in March of 2020 of 11.7%, fell back to its 10-year monthly average of ~3%.
