Hedge Funds vs The S&P 500


According to a report from Preqin, Hedge Funds have returned +4.87% YTD in 2017. This gain represents the highest H1 performance since the first half of 2009, when they gained +16.94%. While it may be the best half year in nearly a decade for Hedge Funds, the +4.78% gain is less than half of the S&P 500’s YTD return of +10.5%. If you add on another half year, Hedge Funds still under performed the S&P. In the past twelve months, they’re up +10.91%, trailing the S&P which has returned +14.44%. Since 2010, the 12-month annualized return for the S&P 500 has consistently been higher than the $3 trillion industry of Hedge Funds.

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Top Performers

While Hedge Funds as a group are up +10.91% in the last twelve months, certain Hedge Funds have had remarkable individual performance. Silver 8 Partners was up a whopping +269.06% in the twelve months to the end of June 2017. The second best fund over the same time, Global Advisors Bitcoin Investment Fund, returned +149.09%. Third best, Loyola Capital Partners, had a +127.14% gain. While these funds represent the creme of the crop for Hedge Funds, their returns are actually rather similar to the creme of the crop in the S&P 500. The top stock from the index over the past year is Nvidia Corporation (NASDAQ:NVDA), up +208.48%, followed by Micron Technology Inc. (NYSE:MU) and Netflix Inc. (NASDAQ:NFLX) up +140.70% and +114.19% respectively.

Jim O’Shaughnessy: Fear Signals Created By The Reptilian Brain

ValueWalk's Raul Panganiban interviews Jim O’Shaughnessy, Chairman, Co-chief Investment Officer, and Portfolio Manager at O’Shaughnessy Asset Management. In this part, Jim discusses the fear and emotional signals created by the reptilian brain. Q1 2020 hedge fund letters, conferences and more That's very cool. For the factor to try to seek the reason why it works, Read More