Alpha is real.

Whalewisdom tracks 13F's which are hedge fund quarterly filings that disclose long positions, but exclude leverage, options or shorts.

Notice the one year, five year, and ten year performance in this chart. If you just bought S&P 500 or NASDAQ index funds, you would have made 4x your money over 15 years.

But the top 20 hedge funds made 21x their money over the same period.
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Sankha Narayan Guria's avatar
Is the set of Whale 20 index constituents constant? Like is the top 20 hedge funds in 2006 the same as top 20 hedge funds in 2020? If it is the same then this chart is impressive, otherwise it is very hard to gauge consistent performance over long term.
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Nathan Worden's avatar
@ngsankha ^thats a good catch. Definitely an important detail in the methodology.
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Nathan Worden's avatar
Insane difference in performance
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Miquel's avatar
Where can I get more data? This is awesome!!
Would be great to have more info on: positions, allocation, rotation, etc
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Gabriel Kaplan's avatar
@ngsankha I wonder if there is survivorship bias here.
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.Yegor's avatar
10% is good but 21% is so much better!
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Christopher Seifel's avatar
There has to be survivorship bias.

Additionally, the dispersion between the top hedge funds and everyone else is extremely wide.

Example: coming out of covid, some of the best hedge funds generated mins boggling returns. Yet the hedge fund index underperformed
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