Canoe Intelligence tackles contribution bias in inaugural VIP hedge fund performance report

NEW YORK, April 2, 2026 – Canoe Intelligence (“Canoe”), the platform for smarter alts management, today announced the launch of its Canoe Hedge Fund VIP Index, a first-of-its-kind performance benchmark built from verified LP data covering the 100 largest hedge funds by assets under management.

The index addresses a well-documented structural limitation in hedge fund benchmarking; conventional indices are constructed from voluntary manager submissions and therefore underrepresent the largest and most established funds. The result is a benchmarking landscape shaped by participation rather than by the actual composition of institutional portfolios.

The Canoe VIP Index eliminates this contribution bias. Performance is calculated directly from capital account statements, investor letters, and fund reports processed across Canoe’s network of 500+ institutional clients and 18,000+ LPs. Returns are net of all fees, verified at the individual fund level, and derived from actual LP balances and transactions.

Key Findings (January 2023 – December 2025):

• Superior risk-adjusted performance. The Total Canoe Hedge Fund VIP Index returned 10.2% annualized (34% cumulative) with a Sharpe ratio of 1.69, compared to 1.42 for the broader hedge fund index and 1.32 for the S&P 500 at 60% exposure. Maximum drawdown was 1.8% versus 3.2% for the broader index and 5.0% for the adjusted equity benchmark.
• Significant capital preservation in multi-manager structures. During the October 2023 drawdown, VIP multi-manager platforms recorded a 0.0% loss versus -5.0% for the adjusted S&P benchmark. In the April 2025 volatility, the group’s average drawdown was 50 basis points, with rapid recovery across both periods.
• Scale advantage in multi-manager strategies. VIP multi-manager platforms returned 9.4% annualized, outperforming smaller platforms and multi-strategy funds (7.7% annualized) with meaningfully lower volatility, reflecting the diversification benefit of broader pod allocation.
• Scale disadvantage in relative value and arbitrage. The one segment where smaller funds outperformed on an absolute basis — the broader RV index returned 8.0% versus 6.0% for VIP RV funds — consistent with structural constraints on executing speed-dependent strategies at larger asset bases.

Mike Muniz, Partner and Chief Strategy Officer at Canoe Intelligence, commented: “Conventional hedge fund benchmarks reflect the managers that choose to be visible. The Canoe VIP Index reflects the managers to which institutional capital is actually allocated. Canoe’s network scale has enabled us to aggregate a verified, contribution-bias-free benchmark and provide allocators with access to a credible reference point for their allocations for the first time.”

The VIP Index covers approximately $3 trillion in institutional allocations across the 100 largest hedge funds by AUM. Managers in the index average an estimated $28 billion in hedge fund AUM and span multi-manager platforms, quantitative funds, global macro, equity long/short, and relative value and arbitrage strategies. Monthly returns are fund-weighted, calculated from verified balances and transactions. Any fund missing data for a given period is excluded entirely. Canoe will update the VIP Index on a quarterly basis.

Note: AUM figures represent estimates sourced from publicly available information and should be considered approximations.

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About Canoe Intelligence
Canoe Intelligence (“Canoe”) is the platform for smarter alts management. We redefine alternative investment intelligence with AI-driven software that directly addresses the core challenges of private markets. Our technology empowers institutions, LPs, and wealth managers to future-proof their alts infrastructure, modernizing systems and providing a scalable foundation for long-term growth and compliance. By automating manual data processing with AI-native precision, Canoe helps clients reduce operational costs and risks, significantly lowering overhead and mitigating errors. Ultimately, our timely, accurate, and comprehensive data enables investment teams to drive superior investment outcomes through deeper insights and more profitable allocation strategies. With Canoe, it’s all about making Alts, smarter. Learn more at www.canoeintelligence.com.

MEDIA CONTACT
Betsy Miller Daitch
Canoe Intelligence
+1 443-690-6200
[email protected]