Geopolitics, policy uncertainty and diverging rate cycles are setting up a strong environment for macro and volatility-oriented hedge funds next year, according to a Bloomberg report citing senior leaders from Man Group, Brevan Howard and the Abu Dhabi Investment Council.
Speaking at Abu Dhabi Finance Week, Shiv Srinivasan, chief investor at the Abu Dhabi state-backed fund, said elevated volatility tied to global flashpoints and a heavy election calendar is creating “pain but opportunity.” His hedge fund book is up 13% YTD, with the fund leaning further into global macro, trend and CTA strategies for 2026 after those approaches delivered 40%+ returns in parts of the sector during the 2022 selloff.
Man Group CEO Robyn Grew echoed the bullish tone, arguing that volatility and cross-asset dispersion continue to generate strong trading conditions for systematic and discretionary macro strategies.
Brevan Howard CEO Aron Landy said geopolitical fragmentation – exacerbated by President Trump’s return to office and persistent US-China tensions – will keep dispersion elevated. He also highlighted opportunities in rate differentials and cryptocurrencies, adding that the “biggest risk in crypto is to have no exposure at all.”
