A Paris-based hedge fund has achieved a 38% annualized return over the past three years, defying sector-wide stagnation by adopting a non-traditional investment framework. The strategy, centered on alternative data and macro-driven sector rotation, has attracted $2.1 billion in inflows since 2023.
- 38% annualized return (2022–2024), far above the industry average of 6.4%
- €2.1 billion in assets under management as of November 2024
- 147 trades executed since January 2023, averaging $18 million each
- 72% of trades delivered positive quarterly returns
- 28% average portfolio turnover rate, above the industry median
- 37 institutional investors across Europe, North America, and Southeast Asia
A French investment firm, known internally as AlphaVerve Capital, has emerged as a standout performer in the global hedge fund landscape, reporting a 38% compound annual growth rate (CAGR) from 2022 to 2024. This performance significantly exceeds the average hedge fund return of 6.4% over the same period, according to publicly available fund data. The firm’s strategy diverges from conventional long/short equity models, instead relying on proprietary macroeconomic indicators and machine learning to reposition capital across emerging market equities, commodity-linked debt, and green infrastructure bonds. AlphaVerve Capital’s success stems from its refusal to adhere to standardized benchmarks and its autonomy in asset allocation. The fund operates with a 28% average portfolio turnover rate—nearly double the industry median—enabling rapid adaptation to geopolitical and monetary shifts. Since January 2023, it has executed 149 trades averaging $18 million in value, with 72% of these resulting in positive quarterly returns. These figures reflect a disciplined, data-driven approach that prioritizes macro momentum over traditional valuation metrics. The fund’s assets under management have grown from €850 million in 2022 to €2.1 billion in November 2024, a 147% increase, driven by institutional investor commitments from Nordic pension funds and sovereign wealth vehicles. Its investor base now includes 37 institutional clients across Europe, North America, and Southeast Asia, with an average lock-up period of 3.8 years—indicating strong confidence in its long-term model. Market analysts note that AlphaVerve’s growth is reshaping expectations around hedge fund performance in a low-yield environment. Its approach challenges the notion that fixed-income and equity beta are the only reliable sources of alpha, suggesting that alternative data integration may be a new frontier in active management.