S&P 500 Total Return vs. BarclayHedge Hedge Fund Index

S&P 500 Total Return vs. BarclayHedge Hedge Fund Index Hedge funds have underperformed the S&P 500 over the past decade, but volatility has been lower. Image: The Daily Shot – The Wall Street Journal, Bloomberg

S&P 500 Hedge Fund Long Positioning

S&P 500 Hedge Fund Long Positioning Speculative long positions in the S&P 500 are near levels that have marked major bottoms in the past. Image: Macro Ops

Hedge Fund Equity Exposure

Hedge Fund Equity Exposure Great chart showing that hedge funds’ equity exposure is near their lowest since the global financial crisis. Image: J.P. Morgan

Hedge Fund Gross and Net Leverage

Hedge Fund Gross and Net Leverage Despite the trade war, hedge fund leverage remains high, compared to the average level of the last five years (aggregated data from Goldman Sachs Prime Services, as of August 19, 2019; should not be relied upon as a comprehensive view of the market). Image: Goldman Sachs Global Investment Research

Hedge Fund Portfolio Density and Turnover

Hedge Fund Portfolio Density and Turnover Hedge fund portfolio density has steadly increased, and fund turnover has declined over the past decade. High concentration risk can lead to high losses and affect the financial system. Image: Goldman Sachs

S&P 500 and Hedge Fund Exposure

S&P 500 and Hedge Fund Exposure While the S&P 500 is at all-time high, hedge funds increase their exposure to equities (last = 0.52). Image: Sentimentrader

Estimated Number of Hedge Funds Launched or Closed since 2008

Estimated Number of Hedge Funds Launched or Closed since 2008 Can hedge funds deliver higher returns than passive investing? Not really. But many investors still think they can achieve higher returns with active trading than with passive investing. The chart below shows that it is really hard to outperform the market. As Warren Buffett said,…