Tue, Nov 10, 2026
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: The macroeconomic drivers of hedge fund strategy returns

Friday, March 13, 2015

This article was authored by Koray Yesildag, Asset Allocation Specialist in the London Global Asset Allocation Team of Aon Hewitt.

Hedge funds have been a hot topic for institutional investors over the past few years, with some increasing their allocations to this alternative asset class as a way to diversify away from the more traditional sources of returns, while others have stayed away, citing complexity, the wide range of different strategies and difficulty in determining what is driving returns. The challenge for consultants is to make these impenetrable looking investment strategies much more accessible and easy to understand to those that are either invested or considering investing in hedge funds.

One way to do this is to provide a clear understanding of how various types of hedge fund strategies tend to perform in different market environments. For example, it is useful to know which types of hedge fund perform best when the economy is slowing, interest rates are falling and general volatility is high. The assumption is that, as the expected returns from competing asset classes like equities and bonds decline, the case for non-directional hedge fund strategies becomes progressively more compelling. The Aon Hewitt Global Asset Allocation and Hedge Fund specialists have embarked on a project to analyse these macroeconomic drivers of hedge fund strategy returns and we think the results so far ......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: DACH institutions push alternatives to 32.3% of portfolios as hedge funds make a comeback[more]

    Matthias Knab, Opalesque for New Managers: Institutional investors in Germany, Austria and Switzerland now hold almost a third of their portfolios in alternative investments, and they are more confident than ever in

  2. KRX chief courts CalPERS for bigger bet on Korea[more]

    Korea Exchange Chairman and CEO Jeong Eun-bo held talks with California Public Employees' Retirement System, or CalPERS, to promote greater investment in South Korea's capital markets, the bourse operator announced Wednesday. Jeong met with CalPERS Chief Investment Officer Stephen Gilmore.

  3. 755 Unicorns, $8 Trillion: Fifth Era maps the autonomous digital economy[more]

    Matthias Knab, Opalesque for New Managers: Fifth Era Partners, a specialized asset manager focused on the convergence of Internet, AI/Agentic and Blockchain technologies, has released the findings of its 13th Bia

  4. Opalesque Exclusive: "Enough beta plays" - how Fasanara builds an alpha-only multi-strategy platform[more]

    Matthias Knab, Opalesque for New Managers: Most multi-strategy funds promise diversification. Fewer can explain why their return streams should stay independent when markets turn. In an Opalesque SkillsLab investor

  5. Opalesque Exclusive: Governance, Scale, and Boutique Resilience in a Consolidating Hedge Fund Industry[more]

    Matthias Knab, Opalesque for New Managers: The hedge fund industry has undergone significant consolidation in recent years, with capital increasingly concentrated among large multi-strategy platforms. Yet boutique m