Investors should lean into hedge funds in 2026 by Sean Duffin Hedge funds remain a vital part of diversified portfolios, and building resilience requires a thoughtful mix of strategies. In today’s environment—marked by elevated dispersion, low correlations, and ongoing policy uncertainty—equity long/short (ELS) managers are especially well positioned. Advances in AI and persistent tariff-related disruptions […]
December 2025
No. Although recent underperformance has led some investors to question whether trend-following is facing deeper structural issues, the strategy is inherently cyclical. Periods of unfavourable conditions are typically temporary, meaning drawdowns have often been followed by strong recoveries. Trend-following remains one of the few strategies with a proven track record of diversification and providing alpha […]
August 2025
Introduction Aaron Costello, Head of Asia, and Vivian Gan, Investment Director, Capital Markets Research Asian and global market volatility surged in early 2025 as US tariffs triggered global growth fears. Given the export-oriented nature of most Asian economies and their sensitivity to global growth and demand, the region may bear the brunt of US tariffs. […]
April 2025
The complexities of ever-changing markets present both challenges and opportunities for compounding wealth over time. Amid significant market volatility, investors should stay focused on sticking with their long-term strategy while looking for opportunities as they evolve. Shifting geopolitical alignments, the prospect of persistently high tariffs, rising sovereign debt in developed markets, and the end of […]
April 2025
Equity long/short (ELS) is a prominent strategy within the diverse hedge fund landscape, accounting for a significant portion—approximately $1.3 trillion, or 29%—of total hedge fund assets as of fourth quarter 2024, according to Hedge Fund Research, Inc. (HFRI). Put simply, ELS managers take long positions in securities they perceive as undervalued, and short positions in […]
February 2025
We expect developed markets (DM) value and small-cap equities to outperform, given our economic views and their steep valuation discounts. Regionally, we believe US equity performance will not match the level set in 2024, allowing European, Japanese, and emerging markets (EM) equities to perform more in line with broader developed markets. Within emerging markets, strong […]
December 2024
In the years following the Global Financial Crisis (GFC), the appeal of hedge funds among institutional investors has diminished. This shift has been driven by legitimate concerns about high fees, a lack of transparency, and illiquidity. Yet, against this backdrop, hedge funds today offer a strategic opportunity for investors willing to navigate their complexities, with […]
July 2024
Over the past decade, executives overseeing corporate defined benefit (DB) pension plans have experienced significant regulatory reform and a full reversal of investment conditions. While rising liabilities once offset asset gains, the opposite is now true. Yet many organizations haven’t recalibrated their approach to plan management in response, leaving them exposed to unnecessary costs and […]
January 2024