An earlier entry pointed out how many sub-strategies there are under the title ‘long/short’. Take one step back and consider this table from the 2016 Preqin Global Hedge Fund Report (click for larger version):

rv_equity_mkt_neutral_preqin.png

The table continues for an entire second page but this half makes the point: that’s a lot of headline strategies (before any talk of sub-strategies).

For those who like steady returns with as few shocks as possible ranking this list by the 5 year net return/volatility columns produces is a clear winner in the equity class: RV Equity Market Neutral (our yellow highlight). It is not the best on that ratio overall: two credit based approaches formerly best known for Jenga cameos in The Big Short pipped it.

The top 10 strategies on the return/volatility ratio look like this (click for larger version):

HF_strat_rankings_2015.png

Perhaps a useful reference point when designing strategy approaches!