The Unstoppable 12: Hedge Fund Strategies for Savvy Investors
Sophisticated investors navigating the complex hedge fund landscape must prioritize transparency and rigorous due diligence to uncover genuine alpha. The absence of stringent regulation in alternatives demands heightened scrutiny of operational risks, liquidity terms, and manager alignment.
Key strategies include separating beta from true outperformance, mastering downside risk metrics like the Sortino ratio, and enforcing high-water marks. Operational due diligence remains non-negotiable—particularly independent NAV verification—while redemption gates require careful analysis in today's higher-rate environment.
Global macro and event-driven approaches offer compelling dispersion opportunities as traditional asset correlations break down. The playbook emphasizes simplicity: complexity often masks risk rather than enhancing returns.
