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Top Hedge fund Strategies for 2021

By: Issuewire

New York City, New York May 14, 2021 (Issuewire.com) - The year 2020 has been one of the most highly volatile years ever for all security markets globally due to the uncertainty associated due to the emergence of the Covid-19 virus and the pandemic spreading to countries all over the world. The year 2021 may not be such highly volatile but the lingering effects of the virus, the vaccination drives, the geopolitical situation globally, the economic impact of the pandemic all together make the outlook for 2021 highly uncertain. Along with these uncertainties and the fact that equity markets globally are highly valued, top hedge fund managers have opted to remain highly nimble in their approach and top hedge funds continue to be conservative in their approach.

Given the fact that global markets are in a recovery phase post the pandemic, there has been a rise in demand for commodities globally, and as such the prices of the commodity have increased and triggered high inflationary environments. Alternative investment fund managers have taken a cautiously optimistic view of commodities and have increased their allocation to commodity markets and commodity-facing securities because of rising inflation.

A lot of hedge fund of funds have bet on commodities including agricultural commodities and adopted a conservative long/short equity strategy. A boost in inflation is expected to cause a reversal in bond yields and as such the alternative fund management industry shall bet on the shorter duration bonds and skip exposure to longer duration bond assets.

However, given that the bond yields are still low and the US dollar is further expected to weaken coupled with the fact that there will be a boost in infrastructure demand by governments globally,  best fund of funds are expected to increase their exposure to emerging markets in the year 2021 to some extent.

In 2021, the shift towards the ESG by family office services shall become even more prominent, and also due to Mr. Biden's re-election, investment clubs are expected to increase their exposure to Cleantech companies over the next few quarters. Yet, another asset class that family office investment managers are now considering having in their portfolio is cryptocurrencies. A better understanding of blockchain technology and the adoption of cryptocurrencies have led to these currencies being adopted in their investment basket as well.

In these uncertain times, online investment clubs, as well as family offices, are increasing their adoption to hedge funds that offer strategies to generate alpha at many low levels of risks.

Media Contact

John Wilson


*****@prolinkage.com

Source :ProLinkage

This article was originally published by IssueWire. Read the original article here.

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