Top 50 Hedge Funds Outperform the Market by 28 percentage points through the first nine months of the year

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3Q Update to Global Investment Report's 2022 Hedge Fund Survey

As we close out the year, extreme market volatility has dashed hopes that the worst of the selloff is over. Uncertainty is being driven by continued monetary policy tightening, intensification of the Russian war against Ukraine that’s fueling a global energy crisis, rising food costs, and now recession in Europe, which most observers believe will jump the Atlantic to the US next year. Growing liquidity concerns threaten to turn this troublesome brew toxic. All this makes the top 50 hedge funds’ performance even more noteworthy. The group was up nearly 4.5% through September, outpacing the market by 28 percentage points.

November 20, 2022

Multistrategy, volatility arbitrage, and global macro funds again propel the Top 50 further into the black as the market selloff deepened

Early in November, the Financial Times’ Lawrence Fletcher gave us a rare glimpse at a recent Elliott Management investor letter. The venerable hedge fund warned economies and markets were likely to get much worse before turning around. The clear message: it’s different this time.

Paul Singer, manager of the $56 billion fund, believes an “extraordinary” set of financial extremes that have come as the era of cheap money draws to a close is making “possible a set of outcomes that would be at or beyond the boundaries of the entire post-WWII period.”