Newsletter March 2018

Slowly but surely we are entering a better investment environment for hedge funds. With the market cycle maturing, volatility is picking up and policy has started to benefit the real economy more than financial markets. Our managers see immense opportunity in the fact that current valuation spreads reflect almost the inverse of this outlook. The positive hedge fund sentiment is echoed in investor expectations. A Credit Suisse survey measured an expected return of hedge funds of 8.5% in 2018, the highest numbers since 2012. And so while real-money managers are curbing expectations in a world of normalizing rates and increased volatility, the outlook for hedge funds is brightening.

Read the full Performance Update here