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Asia Insights: Navigating Higher Rates and Volatility

Introduction Aaron Costello, Regional Head for Asia, and Vivian Gan, Associate Investment Director, Capital Markets Research The path of global central bank tightening remains a top-of-mind question for investors after the recent stress in the US and European banking sectors. While financial contagion seems contained for now and has yet to spread to Asia, the […]

April 2023

2023 Outlook: Hedge Funds

We expect macro hedge funds to perform well, given our expectations that market volatilities will remain elevated and our view that inflation risks are skewed to exceeding expectations. We expect long/short managers will benefit from positive short rebates. Continued Inflation Uncertainties Underpin Our Optimism in Macro Hedge Funds in 2023 Meisan Lim, Managing Director, Hedge […]

December 2022

Solvency Beyond Relief: Unlocking the Full Potential of SFA Program Assets

The American Rescue Plan Act of 2021 (ARPA) included substantial relief funds for the most troubled US multiemployer pension plans through its Special Financial Assistance (SFA) program. The SFA program was created to help seriously underfunded multiemployer pension plans maintain solvency through 2051. Multiemployer pension plans receiving SFA funds now have a unique opportunity to […]

November 2022

Macro Hedge Funds Should Benefit from Improved Opportunities

Rising inflation and moderating growth are generally associated with a higher risk premium as investors start to price in a potential shift in market regime. In the past, global macro managers have generally benefited from better alpha opportunities that arise from volatility. With this backdrop, we expect macro hedge fund performance to be better than average next year.

December 2021

Are Hedge Funds at Risk from Retail-Driven Disorder in Equity Markets?

No, we do not believe that is generally the case. While the recent wild ride of a few companies’ share prices was novel in that it was coordinated by retail investors on the social media platform Reddit, the short coverings that contributed to the price spikes were all too familiar to long-time investors.

February 2021

Friend or Foe: Hedge Funds Versus Alternative Risk Premia (Euro Edition)

Recent years have seen challenges for hedge funds and a shift toward low-fee passive and alternative risk premia (ARP) products in investor portfolios. In this paper, we investigate whether ARP and hedge funds are complementary or whether ARP funds are actually a viable replacement for hedge funds.

January 2020

Protecting Pension Plans' Hard-Won Gains: Could Hedge Funds Play a Role?

In the November 2018 issue of Benefits Magazine, covering pension plan issues affecting multiemployer, single employer and public plan representatives, Investment Managing Director in Cambridge Associates’ Pension Practice, Joe Marenda, contributed an article discussing how hedge funds may play a role in protecting pension plans’ funded status in the event of a recession or stock […]

November 2018