Hedge Funds Show Their Beta As Weekly Returns Rise With Market

Hedge fund managers are known to argue with pride at how their fund’s performance is filled with alpha, individual trader skill credited with performance, and dismiss the beta, impact of the overall market rising on positive fund performance.  Comparing week over week hedge fund performance from the period when the stock market sunk nearly 8 percent in value to the point it rebounded the following week provides an interesting glimpse at a difficult to measure topic.

Hedge funds hit hard by stock market sell-off

Hedge funds considered with the most alpha are often found in the activist investor camp.  Bill Ackman’s Pershing Square, for instance, having among the...