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Hedge funds see “historic” five-month surge

hedge_funds_pandemicHedge funds posted their strongest five-month total return since early 2000 and one of their strongest recoveries in three decades, according to Hedge Fund Research (HFR).

In the five months through to August, hedge funds posted returns of 15.4%, led by equity hedge strategies.

Quant strategies, large-cap technology and specialised energy exposures also gained strongly.

Kenneth J. Heinz, president of HFR, said: “While recent realised gains have been compelling, the continued dynamic market environment continues to comprise a rich forward-opportunity set for long short investing.”

Highly valued technology firms, commodity and crypto currency exposures provide further opportunities, Heinz said.

“It is likely that institutional investors will continue to increase allocations to hedge funds and other alternative assets as ideal portfolio exposures for opportunistically navigating current and future market uncertainty,” said Heinz. 

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