Equity neutral hedge funds provide their ability to weather economic headwinds in Q1 with the HFRI EH: Equity Market Neutral index posting a 0.4% return for the first quarter, according to a report by Pensions & Investments.
Equity neutral hedge funds provide their ability to weather economic headwinds in Q1 with the HFRI EH: Equity Market Neutral index posting a 0.4% return for the first quarter, according to a report by Pensions & Investments.
By comparison, the S&P 500 index lost 4.6% over the same period.
The HFRI EH Equity Market index has traditionally outperformed the overall equity market when the S&P 500 has struggled, most notably in 2018 (1% versus -4.4%), and the first quarter of 2020 when the S&P 500 plunged 19.6 per cent, while equity market-neutral strategies tracked by HFRI saw a 2.6% fall.
