Hedge Funds Seek Absolute Returns Amid Market Volatility
High-net-worth individuals and institutional investors are increasingly turning to alternative strategies as traditional 60/40 portfolios falter under inflationary pressure and correlation risks. The hunt for absolute returns—uncoupled from broader market movements—has become a defining imperative for hedge funds.
Low-risk in alternatives no longer means Treasury-like stability but rather strategies engineered to isolate manager skill from market beta. This shift reflects a broader institutional pivot toward uncorrelated return streams in volatile regimes.