Hedgeweek’s latest Insight report provides data and content around investors’ allocation plans amid predictions of a worsening economic outlook.
SECTION 1
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With 60% of investors set to increase or maintain their hedge fund exposure in 2023, allocators are betting on macro managers to thrive amid rising rates, with the economic upheaval also fostering alpha opportunities in relative value arbitrage and distressed credit.
SECTION 2
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Rising rates and an inflation squeeze are fuelling an increasingly downbeat economic assessment. For hedge fund investors, capital preservation is now critical.
SECTION 3
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Private wealth sentiment towards hedge funds appears decidedly mixed. But attractive liquidity and return profiles – coupled with burgeoning opportunities stemming from cryptocurrency upheaval – offer the chance of inflows.
SECTION 4
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Market commentators say sweeping write-downs on private assets next year could see institutional flows rebalance in favour of hedge funds as fees, liquidity and capacity issues focus minds.