There's a general perception that equity funds with a bias for long positions account for so much of the hedge fund universe because, well, it's the easiest to understand. It's a simple case of buy low/sell high. Be that as it may, it's also where a lot of the alpha is.
Late-stage VC investor Composite Capital Markets -- now Sea Capital following its acquisition in March -- dwarfed everyone else across all single-strategy funds with its ability to pick winners in the self-driving vehicle market. And while the rest of the long-equity pack lagged quite far behind -- 13,641.83 bps of alpha is quite a trick -- there were still a couple dozen funds achieving 1,000+ bps over market using the same general strategy.
That said, shorts added more than just style points to equity funds. While the top long-short fund, Baker Street Capital Management managed to eke out a mere 10,827.86 bps of alpha, every single fund in that category tracked by Novus exceeded 1,400 bps over market.