In this issue of Global Markets Overview, we examine current asset market pricing and our suggestions on how multi-strategy hedge funds can be utilized in portfolios.
Positioning for higher economic and policy differentiation in 2023/24:
In 2022 and year-to-date, most economies have tightened monetary policy aggressively in response to high inflation. The macro outlook for 2023/24 is highly uncertain, with higher variance across countries and within their capital markets.
In these conditions, we believe the return from skilled active management is likely to be outsized – our past track record shows it can be found.
Multi-strategy hedge funds can: (1) take advantage of this macro divergence; and (2) potentially add downside protection to portfolios during equity falls.
