365体育投注网Blended returns from multi-manager portfolios have caused many investors to rethink their approach to hedge fund investing, leading some to change the way they incorporate hedge funds in their portfolios. How are investors changing their use of hedge funds? Which strategies are experiencing the biggest increase in demand? Which managers do investors believe have the greatest edge in today’s markets?
365体育投注网Historically, institutional and private wealth investors have used multi-manager hedge fund allocations to diversify away from their equity and credit beta exposures. However, these hedge fund allocations have delivered varied results over time, which has caused investors to rethink what they are trying to achieve with hedge funds and how to most effectively use them. As a result, many investors are taking a closer look at which individual strategies can help them achieve their new objectives.
Areas of focus for institutional and private wealth investors include fresh approaches to incorporating hedge funds in portfolios, changing demand for investment strategies, and evolving views on which managers have the greatest advantages in today’s market. The views expressed herein were shared by different endowments and foundations, insurance companies, investment consultants, fund-of-funds, single family offices, and wealth management firms.
As a result, investors have been rethinking what constitutes a true diversifier. Some consider a true diversifier to be a strategy that behaves independent from U.S. equity and credit market movements. When equity and credit markets sell-off, these diversifier strategies can generate returns that are flat-to-positive.
365体育投注网When individual hedge funds fill a specific portfolio need, measuring their ability to accomplish that need may be easier than measuring the benefits of a stand-alone multi-manager allocation. As long as investors continue rethinking their use of hedge funds, there will be new ways to incorporate hedge funds in portfolios, new preferences for investment strategies, and new thoughts on which managers have the greatest competitive advantages in the market.
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BNY Mellon’s Pershing and its affiliates provide a comprehensive network of global financial business solutions to advisors, broker-dealers, family offices, hedge fund and ’40 Act fund managers, registered investment advisor firms and wealth managers. Many of the world’s most sophisticated and successful financial services firms rely on Pershing for clearing and custody; investment, wealth and retirement solutions; technology and enterprise data management; trading services; prime brokerage and business consulting.
365体育投注网Pershing helps clients improve profitability and drive growth, create capacity and efficiency, attract and retain talent, and manage risk and regulation. With a network of offices worldwide, Pershing provides business-to-business solutions to clients representing approximately 7 million investor accounts globally. Pershing LLC (member FINRA, NYSE, SIPC) is a BNY Mellon company.