Key Takeaways
- • The PivotalPath Hedge Fund Composite Index slipped 0.2% in September 2026 (YTD: 6.8%), a modest headline loss that masked the widest gap between quant and sector stock-pickers since January 2022.
- • Managed Futures took the top 2026 spot, gaining 3.8% in September (YTD: 13.8%), its best month since February 2024, after a 3.0% gain in August.
- • The PivotalPath Equity Quant Index gained 3.7% in September (YTD: 7.4%), its second-best month since its 2003 inception, behind only December 2021's 3.8%.
- • The PivotalPath Equity Sector Index fell 2.3% in September (YTD: 11.1%), dragged by Healthcare's 7.1% decline, its worst month since January 2022.
- • Small-cap biotech was the pressure point: the PivotalPath Small-Cap Biotech Factor fell 11.82% in September as investors reduced exposure to clinical-stage businesses.
Summary
PivotalPath's October report, published November 10, 2026 and compiled on behalf of $700B in client hedge fund capital, covers data from more than 3,000 institutionally relevant funds spanning over $3T in total assets. The PivotalPath Hedge Fund Composite Index slipped 0.2% in September, with year-to-date performance at 6.8%. According to the report, the modest headline loss masked the widest gap between quant and sector stock-pickers since January 2022, as systematic managers took the opposite side of a second setback in three months for fundamental equity books.
Managed Futures led the year after a second strong month. The PivotalPath Managed Futures Index gained 3.8% in September, its best month since February 2024, lifting year-to-date returns to 13.8%. Back-to-back gains of 3.0% in August and 3.8% in September moved the strategy past Equity Sector's 11.1% YTD and gave it its strongest first nine months since 2022, when it returned 21.0%.
Equity Quant posted its second-best month ever, gaining 3.7% in September (YTD: 7.4%). The result trailed only December 2021's 3.8% and left the index almost six percentage points ahead of Equity Sector, the widest margin since January 2022. The PivotalPath Equity Sector Index fell 2.3% in September. Healthcare, down 7.1%, ranked fifth-worst in the sub-index's history, while the Technology/Media/Telecom sub-index gained 1.5% and leads all sector sub-indices YTD at 21.0%. Every strategy in the Composite remains positive for 2026, with Equity Market Neutral trailing at 2.2%.
Within Global Macro, systematic sleeves carried the index. The PivotalPath Global Macro Index gained 1.4% in September (YTD: 7.4%), with the Systematic Macro sub-index up 3.5%, its best month since April 2022, and Risk Premia adding 3.2%. Discretionary slipped 0.4%. Risk Premia has returned 14.8% year-to-date, its strongest January-to-September run since 2010.
Regional divergence persisted in equity long/short. The PivotalPath Equity Diversified: US Long/Short Index fell 1.8% in September, the weakest of four regional sub-indices and its third consecutive monthly decline. Asia Long/Short slipped just 0.4%, leaving Asia up 10.1% year-to-date against 4.8% for the US. In small-cap biotech, the PivotalPath Small-Cap Biotech Factor fell 11.82% as investors reduced exposure to clinical-stage companies, while commercial biotechnology names proved more resilient, supported in part by short covering.
Managed Futures led the year after a second strong month. The PivotalPath Managed Futures Index gained 3.8% in September, its best month since February 2024, lifting year-to-date returns to 13.8%. Back-to-back gains of 3.0% in August and 3.8% in September moved the strategy past Equity Sector's 11.1% YTD and gave it its strongest first nine months since 2022, when it returned 21.0%.
Equity Quant posted its second-best month ever, gaining 3.7% in September (YTD: 7.4%). The result trailed only December 2021's 3.8% and left the index almost six percentage points ahead of Equity Sector, the widest margin since January 2022. The PivotalPath Equity Sector Index fell 2.3% in September. Healthcare, down 7.1%, ranked fifth-worst in the sub-index's history, while the Technology/Media/Telecom sub-index gained 1.5% and leads all sector sub-indices YTD at 21.0%. Every strategy in the Composite remains positive for 2026, with Equity Market Neutral trailing at 2.2%.
Within Global Macro, systematic sleeves carried the index. The PivotalPath Global Macro Index gained 1.4% in September (YTD: 7.4%), with the Systematic Macro sub-index up 3.5%, its best month since April 2022, and Risk Premia adding 3.2%. Discretionary slipped 0.4%. Risk Premia has returned 14.8% year-to-date, its strongest January-to-September run since 2010.
Regional divergence persisted in equity long/short. The PivotalPath Equity Diversified: US Long/Short Index fell 1.8% in September, the weakest of four regional sub-indices and its third consecutive monthly decline. Asia Long/Short slipped just 0.4%, leaving Asia up 10.1% year-to-date against 4.8% for the US. In small-cap biotech, the PivotalPath Small-Cap Biotech Factor fell 11.82% as investors reduced exposure to clinical-stage companies, while commercial biotechnology names proved more resilient, supported in part by short covering.
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