Fewer Redemptions, But Can Hedge Funds Call It a Rebound?

By Lydia Tomkiw September 30, 2020

“Hedge fund allocators are faced with navigating many currents at once, including a low-interest rate environment that could give hedge funds a boost for the foreseeable future, says Chris Cutler, president of Manager Analysis Services.

“On the one hand, several prominent hedge fund managers have disappointed investors this year. We have seen more allocators finally making redemptions from those managers,” he says in an email to FundFire. “On the other hand, exceptionally poor return prospects for future investments in fixed income strategies is causing allocators to search harder for portfolio stabilizers, including among hedge fund strategies and certain private credit strategies that have low correlations to equity markets.”