
Hedge funds providing best investor protection since dotcom crash
In the ongoing bear market, hedge funds have provided their best downside protection as a proportion of broader market falls since the dotcom crash at the turn of the 21st century.

In the ongoing bear market, hedge funds have provided their best downside protection as a proportion of broader market falls since the dotcom crash at the turn of the 21st century.

HFR’s Fund Weighted Composite Index – a broad-based index tracking the monthly returns of some 1400 single manager hedge funds across all strategy types – remains negative at -3.95% over the eight-month period to the end of August, as long/short

Industrials stocks topped the ‘most-shorted’ rankings in August, ending the month accounting for 22.98% of total short activity in Europe, having reached their highest level in two years on 18 August at 26.57%, according to latest monthly pan-European short position

As both public and private markets enter a period of turbulence and drawdowns, hedge funds are set to prove popular with investors in the second half of 2022, as the recession and geopolitical volatility all play to the industry’s advantage.

As traditional investment managers increasingly dip their toes into the world of digital assets, having access to data and information in formats they recognise and understand is critical to their success.

As investors turn to hedge funds for portfolio insulation during market turmoil, commodities-focused strategies and event driven managers look to navigate fresh market volatility amid a worsening economic outlook.

As the H1 inflation surge pushes central banks to hike interest rates, seismic shifts in bonds, commodities and currencies brought stellar returns for some.

The first-half stock market slump caught hedge funds off-guard, but most long/short managers remain confident they can ride out the storm.

After years of rising markets, the current economic reversal has placed alpha generation firmly in focus after hedge funds were hit by the first-half global turmoil.

Pension funds and other institutional investors closely focused on protecting their portfolios and seeking out sources of potential return in Q2 2022, despite ongoing volatility, as both bond and equity markets plummeted.