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Emerging Markets (EM) hedge funds had a good Q4 of 2022 and continued that performance in Q1 of this year. Their performance came on the back of investors trying to navigate unprecedented uncertainty associated with the ongoing military conflict in Ukraine, continuing rises in interest rates, more bad news on inflation and also increasing positivity around Asia in particular and the reopening of China, helping drive focus back on the opportunities in China’s capital markets, which were hit hard in recent years.
But EM hedge funds are simply part of the bigger picture as liquid alternatives in the form of hedge funds and covering all types of markets, assets and geographies are interesting routes for private clients. They can perhaps most ideally suit those private clients with risk aversion – perhaps who have been left scarred by the events of 2022, and who want to draft in more protections to their portfolios but also with some good upside.
Liquid alternatives in the form of hedge funds have been a key theme amongst the private banks and more broadly the institutional investor community since the main global markets turned downwards in early 2022, and since so many people lost money.
In a falling market, the only way private clients could make money, or at least preserve capital, was to diversify for downside protection through hedge funds that are investing in liquid, diversified alternatives representing non-correlated returns.
There is both considerable logic and opportunity in this type of approach, as hedge funds have played a crucial role in providing liquidity for mispriced assets, particularly when large volumes are traded in thin markets thereby reducing market volatility.
There is plenty of choice - combined, the top 100 US hedge funds managed USD2.75 trillion in assets as of 2021 with nearly USD1 trillion managed by the top 10 US hedge funds alone, and in that period, multi-strategy, long/short, and credit were the most common strategies employed. And those vast numbers do not of course include all sorts of hedge funds across many global markets, with a broad array of approaches and strategies.
In the Hubbis Digital Dialogue of May 11, a panel of experts will drill down into the role of hedge funds in the wealth management community in Asia, aiming to identify the key characteristics of these hedge funds, and to debate why they should suit certain investors and also what liquid alternatives/hedge funds are out there and performing well.
The return of hedge funds
3.00pm - 4.00pm HKT/SGT

A community of leading organisations within Asian Wealth Management

Senior figures in Asian Wealth Management are speaking at this event

Rada Tuntasood
Bank of Singapore

David Elms
Janus Henderson Investors

George Boubouras
K2 Asset Management

Harmen Overdijk
Leo Wealth
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3.00pm
The return of hedge funds
- Given more difficult and challenging markets - what hedge fund strategies will deliver the best performance today?
- Are ‘true alternatives’ now increasingly relevant? And Why?
- Will high inflation and interest rates continue to drive opportunities for alternatives?
- When hedge funds didn’t perform well - like in 2020 – how did it expose those funds with inadequate risk management? And how can investors tell the difference so they can avoid these issues in the future?
- Are hedge funds in increasing favour amongst private clients in Asia, and why or why not?
- What are the downsides of buying hedge funds?
- What sort of percentage of any HNW portfolio would sensibly be allocated to hedge funds?
- Where should private clients in Asia source their advice and expertise to determine which strategies and managers to invest in?
- What is coming next in the world of hedge funds?
Moderator
Speakers
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4.00pm
Webinar Ends
The return of hedge funds
3.00pm - 4.00pm HKT/SGT


Rada Tuntasood
Bank of Singapore

David Elms
Janus Henderson Investors

George Boubouras
K2 Asset Management

Harmen Overdijk
Leo Wealth
The return of hedge funds
3.00pm - 4.00pm HKT/SGT