Hedged Equity: What Happened to the Alpha?

January 25, 2012 | Nat Kellogg, CFA, President

Coming out of a phenomenal period of relative performance during the tech boom and bust, hedged equity performance declined relative to the S&P 500 during the mid 2000’s.

However, absolute returns were still strong in risk adjusted terms, and hedged equity offered significant downside protection in 2008. While hedged equity trailed as the stock market rebounded in 2009, returns were high and trailing three-year performance strong. Lately though, even as hedged equity hedge funds have continued to offer risk reduction in terms of lower volatility, weak hedge fund performance has prompted increasing investor concern.

Download PDF

Nat Kellogg, CFA
President

Get to Know Nat

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

Related Content

04.10.2024

1Q 2024 Market Insights Webinar

— LIVE WEBINAR APRIL 25 — Please join Marquette’s research team for our 1Q 2024…

03.26.2024

Assessing the Likelihood of a Recession and Understanding the Impact on Portfolios

Is a recession coming to the U.S.? It’s a question that has been asked since 2022, as the Fed’s rapid…

01.26.2024

2024 Market Preview Video

This video is a recording of a live webinar held January 25 by Marquette’s research team analyzing 2023 across the…

01.18.2024

Great Expectations

After ending 2023 with a steep market rally, 2024 began on a more muted note, with Fed-pivot exuberance giving way…

12.21.2023

We’re Not So Different, High Yield Bonds and Leveraged Loans

Late last year we authored an article detailing the growing differences between the high yield and leveraged…

10.13.2023

3Q 2023 Market Insights Video

This video is a recording of a live webinar held on October 26 by Marquette’s research team, featuring in-depth analysis…

More articles

Subscribe to Research Email Alerts

Research Email Alert Subscription

Research alerts keep you updated on our latest research publications. Simply enter your contact information, choose the research alerts you would like to receive and click Subscribe. Alerts will be sent as research is published.

We respect your privacy. We will never share or sell your information.

Thank You

We appreciate your interest in Marquette Associates.

If you have questions or need further information, please contact us directly and we will respond to your inquiry within 24 hours.

Contact Us >