Hedge fund performance as of end October. Most are struggling to beat the S&P 500.
Image from Peter Berezin (@PeterBerezinBCA)
Image from Peter Berezin (@PeterBerezinBCA)

Nov 7, 2026 · 5:53 PM UTC

43
97
17
933
188,192
RelevantRecentLikes
Lots of comments about how hedge funds are supposed to have a low beta to the S&P 500. Fair enough, but they are also supposed to have a positive alpha. Some do, but many do not.
1
1
10
2,971
Poor guys. Almost makes me feel sorry for them, Peter. Ha. On an unrelated note, I hope you have a magnificent week! And many thanks for the insightful intelligence you and the rest of the BCA team provides! It is so appreciated. 😊
2
2
235
Thank you very much :)))
1
174
If you knew better, you would also state that the goal for MOST HF is NOT to beat the S&P. For most the goal is to deliver a high sharpe ratio, which frequently includes lower volatility. Over time it delivers a bond-like performance with small drawdowns. See SPX 2000-2004
5
1
50
6,436
@Mike_Taylor1972
Image from Peter Berezin (@PeterBerezinBCA)
1
3
1,878
View more replies
Now check Congress’ stock portfolios….
31
Any allocator who invests in L/S equity should be fired immediately.
75
quantedge at 60% is hard to scroll past
1
15
4,021
They usually do struggle to beat VOO.
119
Most hedge funds don’t earn their keep and should not exist. They excel in marketing and sales
75
With all their million $ infra, hundert thousand $ worth of subs and trade stations, their quants and what the fuck not, people running these funds still cannot do better than an average retail trader.
2
2
1,408
Check the bank accounts of the hedge fund managers. I think you'll find they're doing brilliantly. For themselves.
552
Question, are they supposed to beat the SPX or are they supposed to be uncorrelated?
1
713
I'm in the same boat. Only 10% YTD. Nothing is catching a trend, at least so few names are. I should've been ok buying unprofitable stocks too. That's my big lesson for this year, is to just try to buy unprofitable names if they're going.
2,017
Momentum crashed. Easy explanation.
1,169
The longer the time frame you look over, the more active funds struggle to match the S&P 500. Broad based passive indexing will - over the long-term - always win out. And you don’t have to do anything to be a winner.
1
253
But for sure none will celebrate their Xmas party at McDonald’s ;-)
1
1
743
Why should a market neutral hedge fund with a near zero beta be expected to outperform the S&P 500?
3
1
18
2,110
Most hedge funds should not be benchmarked against the S&P 500 as the risk profile and holding times significantly differ.
60
do you really not know that’s not their goal lmao
13
Warren Buffet something something money managers underperforming the market something something
69
I'm up 14.2857% YTD.
227
Not surprised & has been true for decades in this industry. We have a +20% on S&P YTD
1
116
A chinga
12
2/20 is dead?
62
It’s going to get a lot worse for them.
72
Outperformed by ICT quants
1
244
Citadel Wellington at 15.3% vs Millennium at 5.7% YTD. A wide gap between the two giants.
38
if a market drop of about 20% wipes them out - they were never really hedge funds - but gambling. many hedge funds just copy each other and gamble, go bust, borrow money and repeat the cycle
467
>90% of HFs do not outperform the S&P 500 long-term net of fees
275
Thank for for putting this up. I’m a short only $SPX trading since November of 2021. 2026 has been tough environment for me. As of October 30th, my YT D numbers were at 13.74% and for the month of October I was up 5.00%. So I don’t feel so bad. This week was a monster week.
307
@__paleologo The BAM number is really shocking. How can a multi strat be down close to 3% with treasuries somewhere around 4-5%? Every pod with access to balance sheet should be making 7%+ unless they fuck up. Bad risk management + bad hiring no other explanation
1
548
The strategy column makes this especially useful for allocators. Put each return beside equity beta, maximum drawdown and liquidity terms. Then ask what it added to the rest of the portfolio. A return table and a portfolio-construction table answer different questions.
1
1,678
@RealSimpleAriel do you think they have considered looking at the sharpe ratio?
557
@grok 这轮下跌后，还有哪些机构保留不错的收益会卷土重来
1
284
Load more replies