FYI: Once again, I will review why hedge fund returns shouldn’t be compared to 100% long equities and how to do a more proper comparison. Analysts and authors often compare hedge fund returns to 100% equities (most often, the S&P 500). Then, almost always based on the last nine years since the global financial crisis (GFC) lows, they declare hedge funds an epic disaster. That’s just flat-out wrong. Comparing hedge funds to 100% equities would be a bad comparison at any time. To make things worse, this comparison is done over a cherry-picked time period. So this one has it all! An always fallacious comparison conducted over a particularly extreme period for that always fallacious comparison.
Regards,
Ted
https://www.aqr.com/Insights/Perspectives/The-Hedgie-in-Winter
