2026 Hedge Fund Outlook: Environment Strongly Favors Alpha/Active Over Beta/Passive

Just eight years ago we were celebrating 25,000, which means equities have doubled in less than a decade. By the Rule of 72, that’s roughly a 9% annual return including dividends—nominal, yes, but still a powerful reminder that equities continue to reward patience even through extraordinary volatility, policy shocks, and repeated predictions of recession.