PivotalPath Announces Partnership with The Institute for Private Capital

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Partnership will expand the availability of high-quality hedge fund industry data and intelligence used for academic research

PivotalPath, a leading hedge fund consultant, has announced a new partnership with the Institute for Private Capital (IPC). This partnership will provide academic researchers with a wealth of hedge fund industry information while still maintaining manager confidentiality. Going forward, researchers will no longer be solely reliant on commercial databases, and this access to more comprehensive information furthers IPC’s mission to promote a deeper understanding of the role private capital plays in the global economy.

The hedge fund industry’s historic opacity has led to misunderstanding and misrepresentation in the public sphere. A recent working paper, titled “The Hedge Fund Industry is Bigger (and has Performed Better) Than You Think,” has found that incomplete data, which is traditionally referenced in media coverage and industry-related studies, is a major contributor to the perception that the industry is smaller (by 40%) and lower performing (by 18% over a 4-year period) than many think. Given the relatively few large, “institutional quality” hedge funds that show up in commercial databases, IPC was forced to rethink how empirical researchers should approach statistical analysis of the industry. Enter PivotalPath.

“PivotalPath’s comprehensive information and proprietary research contextualizes performance across funds. Analysis of these richer and more granular characteristics are sure to lead to new insights for both academics and investors,” noted Greg Brown, Distinguished Professor of Finance at UNC Kenan-Flagler Business School and founder of its Institute for Private Capital.

As part of a hedge fund universe-mapping initiative, IPC initially focused on the activist space as a test case for PivotalPath’s data. Tabulating fund-level gross asset values from Form-ADVs, IPC found that PivotalPath covers more than 90% of GAV compared to just 35% for commercial databases. Funds covered by PivotalPath also exhibit better performance across the board, from higher returns and greater alphas to lower betas.

“We are honored to partner with IPC. Together, we seek to ensure hedge funds are viewed through an accurate lens. For too long, hedge funds have been misunderstood, when in fact performance across this $5.2 trillion industry has been far better than conventional wisdom suggests,” said Jon Caplis, founder and CEO of PivotalPath. “In order to provide our clients with context-driven insights, we work tirelessly to structure meaningful data – undeniably the basis for any informative analysis. In the same way we provide insights to our allocator clients, we look forward to enabling top academic researchers, which could have meaningful implications across asset allocation decisions for trillions of dollars in institutional capital.”

PivotalPath conducts a monthly analysis of hedge fund performance and issues regular research on topics and trends that drive industry coverage. To sign up for the firm’s monthly reports, contact inquiry@pivotalpath.com.

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 asset managers, endowments, foundations, pensions, family offices and RIAs.

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Ryan J. Walker
R. J. Walker & Co.
860 930 3611
ryan@rjwalkerco.com

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R.J. Walker & Co.
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