August 2022 | Soaring inflation, stock market upheaval and geopolitical turmoil have rocked global markets in 2022. This Hedgeweek Insight Report examines how hedge funds are adapting to this new investment landscape, charting the major trends impacting manager performance across strategies in H1, and how recession fears and volatility may shape H2 strategy returns.
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.
The first-half stock market slump caught hedge funds off-guard, but most long/short managers remain confident they can ride out the storm.
As the H1 inflation surge pushes central banks to hike interest rates, seismic shifts in bonds, commodities and currencies brought stellar returns for some.
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.