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.
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