Top Hedge Funds Are Hiding and It’s Warping Return Data | Jon Caplis of PivotalPath

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Jul 15, 2025

Jon Caplis, CEO of Pivotal Path, sheds light on the hidden challenges in hedge fund data reporting. He reveals how leading hedge funds underreport data, distorting perceived returns and discouraging institutional investment. Caplis argues this could drop returns by about 400 basis points annually. He discusses Pivotal Path's innovative approach to rectify these issues and shares insights on the evolving hedge fund landscape, emphasizing the need for improved transparency and communication with investors.

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INSIGHT

Top Hedge Funds Skew Data

Top-tier hedge funds refuse to share data with commercial databases.
This leads to underreported performance by approximately 400 basis points annually industry wide.

INSIGHT

Underreporting Causes Underinvestment

Underreported hedge fund performance causes significant underinvestment.
Accurate data could double institutional allocations to hedge funds.

ADVICE

Communicate Hedge Fund Edge Clearly

Hedge funds must clearly articulate their strategy and peer group.
Communicate your unique edge with data-supported confidence to build credibility.

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Jon Caplis, CEO and founder at PivotalPath joins Other People’s Money to discuss how underreporting of data by the top tier of hedge funds is skewing the data that institutional investors use to make allocation decisions, resulting in undeservedly poor perception of the asset class, and significant underinvestment from institutional investors relying on allocation models. He argues that the top firms’ absence from most data sets has dragged industry wide return metrics down by approximately 400 basis points annually. Caplis also discusses how PivotalPath is combatting this data issue, the performance of hedge funds in 2025, and the mistakes many hedge funds make in communicating with institutional LPs that make up PivotalPath’s client base.

Learn more about PivotalPath at https://www.pivotalpath.com/

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