[gvhst]

Many hedge fund's run a factor neutral (market + other risk factors are hedged out of the portfolio) long short book. If done right (and thats the catch) there should be low correlation to S&P.

T-bills are the performance benchmark for hedge funds but not the risk benchmark (which is generally something riskier). This can sound counterintuitive as T-bills are a very low hurdle to clear. However, in a downturn scenario generally causes rates to fall, increasing t-bill return when the rest of the market goes down. In that case its a very difficult hurdle to clear.

[sailingparrot]

Do you happen to have any resource that dives into this? This is really interesting would love to know more about how this works in details.

[runako]

Not the OP, but _When Genius Failed_ by Lowenstein was a good book for understanding what happens in the asterisk ("if done right").

[sailingparrot]

Thanks! I'll check it out.