Hedge Fund Managers Strategize Bold Moves Amid Election and High-Interest Environment for Risk Mitigation and Alpha Growth

In anticipation of the 2024 U.S. presidential election and the expected continuation of a high-interest rate environment, hedge fund managers who participated in a recent survey said they were planning bold moves to mitigate risk and maximise alpha potential.

The hedge fund survey was published this month by Dynamo Software, Dakota and ProFundCom.

Nearly half of hedge fund participants said they plan to diversify their investment allocations across multiple asset classes over the next 12 months.

They named the top five geopolitical and economic factors influencing these expected moves as follows: interest rates, the U.S. presidential election, geopolitical conflicts, economic recession and global trade tensions. They are prioritising economic and geopolitical factors over ESG criteria and climate policies, which indicates a strategic realignment in response to uncertainties.

Read the rest of the article at Opalesque here.