News Digest: Changing market trends for Hedge funds in 2022
September 15, 2022
Hedge funds could witness some trend changes during the remainder of 2022, led largely by their willingness to diversify from their existing strategies. For example, rising inflation in the US could allow fund managers to benefit from widening spreads. They could also benefit from near-term opportunities in currencies and interest rates.
Market volatility led stock dispersions are likely to create a tailwind for relative-value strategies, which could be a boon for hedge funds seeking good returns. The trend of responsible investing is a third area that could help as a survey by Barclays noted that 22% of investors are now prioritizing ESG while deciding on allocating money to hedge funds.
A PWC report indicates that institutional investors are shifting towards digital asset investments with a fifth of all hedge funds surveyed having parked their money in such assets. Another survey by EY says 31% of all hedge fund managers plan to add crypto to their portfolios within the next two years.