While past performance is not indicative of future results, it is immensely satisfying to own managers amongst the best performing managers for the year or month. Likewise, it is excruciating to have exposure to the worst ones. NilssonHedge tracks the best and worst managers per strategy group. These reports are updated throughout the month, as more data arrives. This page shows the managers that we have classified as Market Neutral Strategies.
Market Neutral managers are managers that strive to trade equities while hedging out market risk, either by offsetting with another stock or by hedging out the beta through Futures. There exists a number of different strategies to manage exposure and extract alpha. Factor exposures are common, although some managers with a strict view on market neutrality also neutralize exposure to equity factors.
The Top 10 Equity Market Neutral and Worst 10 Equity Market Neutral funds for the reporting month are shown below. This is based on our proprietary composite data streams, but may contain errors. These are not filtered for Asset Under Management and are ranked on the a simple return metric without adjusting for volatility.
These report may not always display the correct results, so please verify the returns before taking a victory lap through the office. NilssonHedge does not endorse any managers on the list and ending up at the top or bottom probably tells you more about the risk of a particular than anything else.
The scatter plots above shows the relationship between AUM and Returns (MTD/YTD). Large managers have progressively larger circles, showing that they have earned or lost more money. In some cases, we do not have reliable AUM numbers.
There may be additional funds that are better or worse, that we have not captured in our database. Please do tell us if we are missing your fund and we are happy to capture the data.