In volatile markets, institutional investors position hedge fund exposure accordingly, but are not entirely satisfied in some alternative sectors. With the risk-on again, risk-off again relationship in the stock and commodity markets in full swing, trends in investor sentiment towards hedge fund strategies seem to correlate with market volatility. Hedge fund strategies were down -1.97% year to date, a J.P. Morgan Prime Brokerage Global Hedge Fund Trends report noted. With the stock market down -5.09% this might be viewed as a relative positive for hedge funds, but such a view becomes nuanced once the individual strategies are examined. While economic…
Amid Erratic Markets, Hedge Fund Exposure Examined
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.