When High Alpha Met Low Beta


  • An in-depth analysis of hedge fund performance demonstrates that, over the past 15 years, lower-beta hedge fund styles have generally achieved higher alpha, aligning with investors' objectives of maximizing returns and diversification.
  • Within the hedge fund landscape, multi-strategy, macro, and trend-following strategies have delivered meaningful alpha while maintaining lower exposure to traditional market betas.
  • The persistence of heightened market volatility may further extend this long-term trend, increasing the appeal for hedge fund strategies that offer meaningful defensiveness and alpha potential.

When investing in hedge funds, it’s all about the first two Greeks. Alpha and beta, that is.