As institutional investors consider alternative investments in anticipation of market shifts, inflation is a new factor that could impact hedge fund portfolios acutely.
As inflation fears swirl with the greater post-pandemic demand for consumer and industrial goods, it is likely there will be a central bank response of raising interest rates. Few are taking bets on when this will occur, but the inevitability is clearly dominating the asset allocation moves of institutional investors.
According to fund of hedge fund provider K2 Advisors, hedged strategies are primed to do well in both rising and falling . . .