Unlimited Hedge Fund Barometer: Long/Short Equity Strategies Continue to Outperform in Q2, Driving Recent Surge in Big Tech Stocks
16 Julio 2024 - 8:05AM
Unlimited, an investment firm and ETF sponsor that uses proprietary
technology to provide low-cost alternative strategies to a variety
of investors, published its Q2 2024 Hedge Fund Barometer today,
showing that equity long/short strategies outperformed others with
average gains of 2.7% for the quarter and global macro managers
notably underperformed. Long/short equity funds have increasingly
rotated into large tech companies, which likely provided support
for this much-discussed portion of the market.
Unlimited’s Barometer uses powerful machine learning technology
and multiple data sources to track performance metrics for the
major hedge fund strategies. It also provides a near real-time view
into how hedge funds are positioned across major asset classes,
industry sectors and geographies.
Based on Unlimited’s data, equity long/short managers held
normal levels of overall equity exposure during the quarter, but
have increasingly taken larger positions in large-cap growth stocks
and cut exposure to small- and mid-caps in Q2 2024. This marks a
reversal in their approach from 2022 and 2023, when managers were
overweight smaller stocks with lower valuations.
“Market and economic trends oscillated quickly in the second
quarter and global macro funds on average had a hard time finding
returns while long/short managers benefitted from their exposure to
the big tech names,” said Bob Elliott, CEO and CIO of Unlimited.
“In the commodities space, funds are heavily short energy, but long
gold, metals and agricultural commodities. This creates the
possibility for a short squeeze in energy later this year if the
market turns bullish.”
Unlimited Hedge Fund Barometer Q2 2024
Findings
According to Unlimited’s latest Barometer, hedge fund
performance was modestly positive across most strategies in Q2
2024. To read the full report, click here. Other highlights
include:
- Average gross returns across all strategies were just below
+1.5%
- The best performing fund style was long/short equity at
+2.7%
- The worst performing fund style was global macro at -0.1%
As we enter the second half of 2024, Unlimited’s Barometer also
shows hedge funds:
- Held widely divergent views across commodity markets: long
agricultural commodities, gold, and metals, while near max short
energy.
- Added to their bullish U.S. dollar position, reflecting the
significant relative strength of the U.S. economy, tighter relative
Fed policy, and strong asset performance.
- Remained cautious on U.S. bonds, reflecting the continued low
term premium, significant ongoing supply, tight monetary policy and
satisfactory growth conditions.
- Pulled back on their previous overweight positions in Japanese
stocks as it became increasingly clear domestic growth conditions
have softened and the BoJ is considering tightening (and more FX
intervention) ahead.
- Fixed income managers continued to hold near record exposure to
corporate spreads to generate modest returns despite secularly low
spread levels. They appear to be holding near their highest level
of credit risk in history while spread levels are near all-time
lows. With spreads so tight, these managers may have difficulty
driving returns even with such high leverage. Current positioning
suggests these managers are unlikely to have capacity to squeeze
spreads lower.
Click here to view a video on how Unlimited’s technology
works.
About UnlimitedFounded in 2022 by Bob Elliott,
Bruce McNevin and Matt Salzberg, Unlimited is an investment firm
using proprietary technology to create strategies that offer
lower-cost access to 2 & 20 style alternative investment
strategies, such as hedge funds, to a wide variety of investors.
Mr. Elliott has built innovative hedge fund strategies for more
than two decades, including at Bridgewater Associates, the world’s
largest hedge fund. Mr. McNevin is a Professor of Economics at New
York University and has held various data science positions at
hedge funds Clinton Group and Midway Group, along with positions at
Bank of America and BlackRock. Mr. Salzberg serves as a Managing
Partner at Material and Board Director of Unlimited. Learn more at
unlimitedfunds.com.
Media Contacts:
Sarah Lazarus |
Zach Kouwe |
Dukas Linden Public
Relations |
Dukas Linden Public
Relations |
+1 617-335-7823 |
+1 551-655-4032 |
sarah@dlpr.com |
zkouwe@dlpr.com |
For informational and educational purposes only
and should not be construed as investment advice. The data shown
herein represents past performance and should not be construed as
providing any assurance or guarantee as to returns that may be
realized in the future. No representation is being made that any
investment will or is likely to achieve profits or losses similar
to those shown herein. No investment strategy or risk management
technique can guarantee return or eliminate risk in any market
environment.