Hedge Fund Strategy Outlook Q2 2020

Preview

In our view, pricing dislocations between companies, industries, regions and asset classes due to the impact of COVID-19 and corresponding price adjustments offer abundant opportunities for select hedged strategies. The length and depth of both the economic supply-and-demand curve adjustments are key to the richness and tenor of the opportunities.

Strategy Highlights

Discretionary Global Macro

Extreme volatility may provide compelling opportunities for cross-asset managers, especially those who can take a nimble approach. Asset class or regional specialists may be well-suited to profit as externally driven dislocations create attractive entry points.

Fixed Income Relative Value

Fixed income markets are experiencing significant levels of stress. These types of dislocations can present attractive trading opportunities for well-capitalized managers focused on relative value strategies.

Long/Short Equity—Technology

The technology opportunity set is a result of notable intra-sector dispersion. Valuation and earnings metrics may be uncertain, but fundamental dispersion is clear as segments of technology will win and others may lag post-COVID-19.