Impact of higher rates on hedge fund returns is evolving: PivotalPath

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By Will Wainewright
Credit: Unsplash

Sustained higher interest rates since 2022 have continued to elevate hedge fund returns, with equity quant a particular beneficiary of the recent regime.

New research from PivotalPath found that hedge funds averaged an annualised return of 9.9% between December 2022 and December 2025, throughout which the risk-free rate (judged by 3-month Treasury Bill Rate) was above 3%.

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