Hedge Funds

In our view, hedge funds are a critical component of a strategic asset allocation and play an important role in long-term alpha generation as well as beta and correlation mitigation strategies. However, across strategies only a very small number of funds offer an appropriate level of risk-adjusted returns, and identifying those funds takes considerable time and resources.

Our hedge fund professionals diligently review the broad universe of hedge fund opportunities, identifying managers early in their life cycle and forming long-term business partnerships with those that we expect to generate attractive and sustainable risk-adjusted returns.

Our hedge fund expertise spans an array of strategies including long/short equity, event-driven, credit-focused, and global macro. Over the last four decades, our clients have benefited from the differentiated return streams, capital protection, and reduced volatility offered through these strategic partnerships.

 

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.