Don't ignore the 'hedgies' in multi-asset portfolios

MULTI-ASSET

James de Bunsen, fund manager in the multi-asset team at Henderson Global Investors, explains why it may be time to start believing - and learning - from the hedge fund hype.

For several years now, it has been possible to access hedge fund strategies with improved liquidity and transparency, via the expanding universe of UCITS absolute return funds. Though many investors shun hedge funds, either because they are offshore and unregulated, or because they simply do not believe the hype, it is worth keeping an eye on what these hedge funds, with almost $2.5trn in assets, are up to. A great deal can be learnt from studying the data produced by prime brokers detailing their positioning and performance. Hedge fund data is often both more timely and representativ...