PivotalPath Announces Hedge Fund Index App - Directly Addresses Most Common Shortfalls of Hedge Fund Indices

NEW YORK, Nov. 17, 2021 /PRNewswire/ -- PivotalPath, a leading hedge fund consultant, has announced the launch of its Hedge Fund Index App, a new product designed to solve the issues that limit the usefulness of hedge fund indices. Institutional investors rely upon these indices for meaningful asset allocation decisions and when evaluating individual funds. Yet the ones offered by leading providers contain widely known systemic issues, leaving investors with limited or even misleading visibility into manager performance. PivotalPath's Hedge Fund Index App provides the relevant information, context and analytical tools needed to truly understand performance across different funds and strategies.

There are several issues that make the practical use of hedge fund indices less effective than they could be. One of the main deficiencies stems from the incomplete set of fund managers or data that comprise them, resulting in what is commonly known as a negative selection bias. In addition to this bias, there is often a lack of consistency. The industry is known to put speed of reporting over accuracy, which often requires updates and restatements. As a result, institutional investors have either reluctantly accepted these deficiencies given the lack of better choices, attempted the costly exercise of building them in-house, or worse, have ceased using them altogether.

"Our unique philosophy as a hedge fund consultant has always been based on a simple question; how can an allocator make a good hedge fund investment decision if they don't know all of the relevant choices? This is why we build the most robust peer groups and indices, so our clients not only know their full set of options, but have the transparency and tools to accurately evaluate, benchmark and monitor their hedge funds in the right context," noted Jon Caplis, founder and CEO of PivotalPath.

PivotalPath has worked with some of the most sophisticated institutional investors since its founding in 2013, providing a more representative set of funds and better methodology for allocators to adhere to. The latest Hedge Fund Index App takes these solutions a step further by providing unparalleled transparency while protecting individual fund information from those that are not institutional investors through aggregation and anonymization.

"The Robin Hood Foundation relies on PivotalPath and their hedge fund indices to evaluate its portfolio and individual managers in the right context," noted Mike Jacobellis, member of the Robin Hood Foundation Investment Committee. "As a byproduct of their rigorous hedge fund research, PivotalPath's indices are more comprehensive, accurate and transparent than existing index providers, leading to more informed decisions."

On behalf of over $150bn in client hedge fund capital, PivotalPath covers over 2,400 institutional quality hedge funds across 40+ different strategies spanning more than $2.5 trillion in industry assets. The $2.5 trillion represents hundreds of billions in hedge fund capital - or more than all commercial databases combined as independently confirmed by the Institute for Private Capital. PivotalPath's Hedge Fund Index App updates daily and performance snapshots are issued via PivotalPath's Hedge Fund Indices report on a semi-monthly basis. Additionally, PivotalPath also offers a monthly download called the "Pivotal Point of View," which provides commentary and analysis on the biggest issues facing the industry.

To learn more about PivotalPath or to sign up for the firm's monthly reports, contact [email protected].

About PivotalPath
PivotalPath is a leading hedge fund consultant, providing research and intelligence to institutional investors. The firm's suite of apps empowers hedge fund allocators and managers with peer group-driven analytics, industry insights, transparent indices, manager meeting notes and customizable visualization tools not found anywhere else. PivotalPath's clients include endowments, foundations, pensions, family offices and RIAs.

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SOURCE PivotalPath

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