Man FRM Early View

While investors must continue to wait and see what kind of ‘landing’ the global economy faces in the second half of the year, the enthusiasm for playing the burgeoning AI narrative is understandable.

Ignoring low-probability, high-impact events – such as the US debt ceiling – isn’t a risk-management strategy.

It’s as if we are sitting at a crossroads of possible economic paths, and our usual maps and compasses are malfunctioning.

Hedge funds must balance the risks and opportunities created by the prevailing uncertainty.

Hedge funds were caught in a game of cat-and-mouse with February inflation data.

It has been a very odd start to the year.  With the MSCI World touching levels not seen since pre-Jackson Hole in August, market strategists have been left scratching their heads.

The only real surprise for December was that a year which has seen such persistently high volatility across all asset classes finished with something of a whimper.

Hedge funds had a mixed month in November, with losses to momentum strategies but positive returns to longer-biased exposures.

October was a mixed month for hedge funds, with positive returns in equity and credit funds, but negative returns in macro strategies.

Hedge fund managers had a mixed month in September, although in general the industry did well to protect capital.

Hedge fund managers enjoyed positive returns in August, during a volatile month in markets.

Risk-on behaviour across markets saw hedge funds post positive returns during July, with a range of results across strategies.