Hedge funds: Breadth leads to destruction?

That a third of hedge fund assets are invested in multi-strategy funds has implications for the wider market when funds need to sell off their most liquid assets.

Does anyone remember when single-strategy hedge funds started branching into other strategies with a passion three years ago? The big debate back then was style drift, and whether these managers had the experience to invest in asset classes beyond their existing expertise.

After a brief period of humming and hawing, investors decided it was better for a fund to have broader investment opportunities, and the hedge fund managers’ performance in multi-strategy funds eased any concerns about their expertise.

Access intelligence that drives action

To unlock this research, enter your email to log in or enquire about access