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if this were the case, then you'd expect these modern uncorrelated funds to outperform the sp500 in times when the market went down, right? However this is not
by misja111 3y ago
if this were the case, then you'd expect these modern uncorrelated funds to outperform the sp500 in times when the market went down, right?
However this is not the case, the sp500 also outperformed most funds in e.g. 2020.
See e.g. https://www.reddit.com/r/dataisbeautiful/comments/10lpczg/oc_average_hedge_fund_vs_sp_500_annual_return/ https://www.reddit.com/r/dataisbeautiful/comments/10lpczg/oc...
- bombcar 3y agoThe purpose of a hedge fund should be to hedge a specific risk. But those hedge funds are not advertised, the ones advertised are the ones being sold.
- swyx 3y ago> outperform the sp500 in times when the market went down your chart shows the market going up in 2020. but look im not saying ALL or even MOST hedge funds reach their goal. usually the average hedge fund underperforms given its a ~zero sum game. just objecting to the popular way of comparing things. you dont judge a fish by its ability to climb trees.