Dynamo: Hedge Funds Signal Shift in Investment, Business Strategy

Hedge fund leaders are strategizing bold moves to mitigate risks and optimize alpha potential to as they prepare for potential geopolitical events and the likelihood of a sustained high-interest rate environment, according to the latest survey in the quarterly Dynamo’s Frontline Insight Reports series.

Findings reveal that a significant proportion of hedge funds are gearing up for intensified fundraising efforts, with 55% expecting to ramp up activities, in contrast to just 30% of the overall General Partner community. Additionally, 45% of the hedge fund participants said they aim to diversify their investment allocations across various asset classes, compared to only 25% of the broader GP sector.

About 70 global hedge fund leaders responded to the survey, which was conducted in partnership between investment management platform Dynamo Software, hedge fund marketing technology provider ProFundCom and cap intro company Dakota. The respondents cited geopolitical and economic factors as the primary influencers behind their anticipated strategic moves. Interest rates emerged as the top concern (80%), followed by the U.S. presidential election (78%), geopolitical conflicts (63%), economic recession and global trade tensions.

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