HFR is pleased to present a special report providing the foundation for quantitative analysis on the performance of hedge funds through the lens of which U.S. political party administration held the office of President and majority in Congress from January 1990 – September 2026.
Key findings:
- Year 2 Performance Effect: The second year of a president’s four-year term has historically coincided with the lowest average annual hedge fund performance.
- 2026 generated the highest hedge fund performance over the first nine months of a midterm year since 2006.
- In the fourth quarter of a midterm year, hedge funds have historically generated the strongest performance when the midterm election resulted in no change in Congressional majority.
- Hedge funds have generated stronger performance when one political party controls both the House and Senate than when control is split between the parties.
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