Is the hedge fund industry in decline? Despite what recent headlines might indicate, a look at the past 25 years of hedge fund history shows that what’s happened of late is all quite normal relative to the cyclical nature of the industry. In fact, given the uncertainty around us, we believe that astute investors still recognize that hedge funds have the ability to deliver great returns in tough economic times.
Properly constructed hedge fund portfolios continue to deliver attractive, risk-adjusted returns while providing diversification and defensiveness during challenging environments for risk assets. We believe alternative investments are an essential part of any well-diversified portfolio.
At Mercer, our objective is to find the world’s best hedge funds and invest with them forever. We carry out extensive research and due diligence, diversify as much as is prudent, and adhere to our principles. That’s why our hedge fund portfolios have much-lower-than-average exposure to equity market risk, and above-average long-term performance.
Find out how a Mercer consultant can help deliver the most effective investment strategies for your portfolio: Contact us today.