From CNBC: 2024-11-12 15:31:26

Hedge funds historically perform better under Democrat presidents, delivering 10.16% average annual returns compared to 11.99% from the S&P 500. However, the industry underperformed overall when compared to the S&P 500, regardless of the president in office. Total net asset flows were higher under Republican administrations, despite Democrats serving more years in office.

Hedge funds outperformed a bond index under both Democrat and Republican administrations. Despite this, hedge fund participants donated more to Democratic candidates in the 2024 election cycle, with $31 million compared to $16 million for Republicans. The industry remains more correlated with asset-class performances than specific administration policies.

The upcoming 14th annual Delivering Alpha event on Wednesday may provide insights into how money managers are adjusting their portfolios in light of the current political landscape. Hedge fund returns are largely influenced by market positioning rather than specific policies, making it difficult to predict the industry’s performance over the next four years.

Read more: Hedge funds performed better under Democratic presidents than Republican ones, history shows