The curated database of hedge funds that publish investor letters. Research by geography, strategy, and schools of thought.
| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
|---|---|---|---|---|---|---|
The Easterly Hedged Equity Fund returned 7.48% in Q2 2026, capturing approximately 73% of the Bloomberg US 500 Index return of 15.61% while maintaining meaningfully lower volatility. Following elevated uncertainty in Q1, equity markets rebounded sharply as the CBOE Volatility Index fell approximately 30% from earlier highs. The recovery was supported by stronger-than-expected corporate earnings, easing geopolitical tensions, and increasing optimism regarding a potential Middle East ceasefire. The Fund's systematic, short-duration hedging strategy adapted throughout the quarter, repositioning approximately every four to five weeks to remain responsive to changing market conditions. Despite the recovery, several risks remain including inflation running above the Federal Reserve's target, elevated equity valuations requiring continued earnings growth, and concentrated market leadership among a small group of companies. The manager believes the Fund's disciplined approach to downside risk management remains well suited to markets characterized by elevated uncertainty and changing leadership, helping investors remain invested through market cycles while seeking attractive long-term risk-adjusted returns.
The Easterly Hedged Equity Fund employs a systematic, short-duration options hedging strategy designed to provide broad equity market exposure while seeking to reduce downside risk through active repositioning approximately every four to five weeks in response to changing volatility, valuations, and market conditions.
While near-term sentiment has improved, the manager believes elevated valuations, concentrated market leadership, evolving monetary policy, and ongoing geopolitical uncertainty continue to support a disciplined approach to equity investing. Rather than attempting to predict market outcomes, the Fund is designed to systematically adapt to changing conditions while maintaining broad equity exposure and seeking to reduce downside risk over time. The investment approach is viewed as well suited to markets characterized by elevated uncertainty and changing leadership.
As of Aug 3, 2026
Lead Portfolio Manager
Neutral / Balanced
Market Conviction
The Fund employs a systematic, rules-based hedging strategy that repositions every four to five weeks, indicating a process-driven rather than high-conviction approach. No individual positions are named or sized. The letter is entirely focused on the hedging methodology and market commentary without discussing specific holdings. The strategy is diversified broad market exposure with systematic risk management overlays. The absence of named positions, the systematic rather than discretionary approach, and the diversified nature of the portfolio all indicate low-moderate conviction. The explanation confirms no specific holdings are discussed, which caps the score below 0.54 per the hard rule.
Growth Outlook
The manager expresses cautious optimism, noting that U.S. equity valuations have moderated and appear more balanced relative to expected 2026 earnings, though uncertainty remains. The tone is constructive but acknowledges ongoing risks.
Risk Appetite
The Fund maintains its systematic hedging approach with shorter-dated structures, indicating a defensive but not overly cautious positioning. The strategy allows for market participation while providing downside protection.
Capital Deployment
No cash level changes are disclosed in the letter. The Fund maintained broad equity exposure throughout the quarter while the hedging overlay was repositioned systematically. The strategy is described as adapting to conditions rather than deploying new capital or de-risking. The 73% market capture suggests stable net exposure with tactical hedging adjustments. This represents rotation and rebalancing within the hedging framework rather than net deployment or withdrawal of capital. Score reflects neutral activity with slight positive bias from maintaining equity exposure through the recovery.
Forward Guidance
The manager believes the Fund remains well-positioned for the future, with confidence in their dynamic beta management approach to handle various market conditions, though they acknowledge continued uncertainty.
Language Signal
The letter contains balanced directional language. Bullish terms include 'recovery,' 'improving sentiment,' 'stronger-than-expected earnings,' and 'attractive long-term risk-adjusted returns.' Bearish language includes 'elevated valuations,' 'risks remain,' 'concentrated leadership,' and 'ongoing geopolitical uncertainty.' The net balance leans slightly positive given the recovery narrative, but the extensive risk discussion prevents a higher score. The language is more constructive than cautious but not overwhelmingly bullish.
Perceived Risk
The manager identifies multiple significant risks including Middle East geopolitical tensions, oil supply disruptions, inflation concerns, Federal Reserve policy repricing, and elevated market volatility. These risks are discussed in detail with specific market impacts described.
Opportunity Density
The manager does not characterize the opportunity set as abundant or scarce. The focus is on systematic participation in broad market exposure rather than identifying specific opportunities. The emphasis on selectivity, concentrated leadership, and elevated valuations suggests a more challenging environment for finding compelling ideas. The phrase 'elevated valuations' and focus on risk management rather than opportunity identification indicates a selective rather than rich opportunity environment. The lack of discussion about specific attractive areas or new positions suggests moderate-to-sparse opportunity density.
Time Horizon
The Fund employs a systematic hedging strategy that repositions every four to five weeks, indicating a short-to-medium term tactical framework. However, the letter emphasizes 'long-term equity values,' 'long-term risk-adjusted returns,' and 'helping investors remain invested through market cycles,' suggesting a multi-year investment horizon for the underlying equity exposure. The combination of short-duration tactical hedging with long-term equity ownership places this in the medium-term range. The quarterly repositioning and focus on near-term volatility management prevent a higher score, while the long-term framing prevents a lower score.
Top Conviction Themes
Key Catalysts
Every insight in this database connects to the original source. Read the actual thesis, see the actual concerns, and make your own call.
Buyside Digest has no business relationship, partnership, agency, sponsorship, endorsement, or affiliation with Easterly - Hedged Equity Fund or any other manager whose content appears on the Service, except where expressly stated. We do not receive Manager Content directly from managers in most cases; content is collected from publicly available sources. Managers have not necessarily reviewed, approved, authorized, or endorsed our display of their content, our editorial commentary, our metadata extraction, or our classifications. Use of a manager’s name is for accurate attribution and identification purposes only, under principles of nominative fair use.
Buyside Digest does not independently verify the regulatory status, registrations, licensing, qualifications, credentials, or professional standing of managers whose content appears on the Service. We do not represent that managers are properly registered with applicable regulatory bodies, that their content complies with applicable securities laws, or that their performance representations are accurate. Inclusion of a manager in our database is based on the publicly available nature of their content, not on our verification of their regulatory status or content compliance. Users are responsible for conducting their own due diligence on any manager.
Performance data, returns, assets under management (“AUM”), and similar figures displayed on this page are sourced from publicly available manager communications (including investor letters), public filings, or other third-party sources. Buyside Digest does not independently verify performance figures, calculate returns, or audit manager-reported data. Such figures: May be selectively reported by the manager; May use non-standard calculation methodologies; May not reflect fees, expenses, taxes, or other costs; May be inconsistent across reporting periods; May be outdated. Past performance is not indicative of future results. Performance figures should not be relied upon for investment decisions without independent verification. Users should request audited performance data directly from the manager and conduct their own due diligence.
