- Advertisement -
- Advertisement -

Related

Manager Selection Critical Amid Worsening Beta

Latest Report

- Advertisement -

Stockholm (HedgeNordic) – Hedge fund managers will have more opportunities to perform well as central banks have started unwinding their unconventional monetary policies, according to a recent market outlook released by J.P. Morgan Asset Management.

Hedge fund managers have not encountered numerous opportunities to distinguish themselves from their rivals in recent years, as risky assets have been moving in near-lockstep due to central bank buying. As the monetary policy normalisation process starts, fundamentals will be driving securities and sectors again. As a result, skilled stock pickers may have more opportunities to generate alpha. “With lower correlations across individual stocks and indices, there is more room for managers to play,” said John Bilton, Head of Global Multi-Asset Strategy at J.P. Morgan Asset Management, during an event held at the firm’s headquarters to discuss the new market outlook.

Despite historically high equity valuations, the report anticipates an improvement in alpha opportunities for hedge fund players, as a more fundamentally driven and less central bank/macro market-driven environment continues to evolve. Put differently, the transition from a macro-driven to a more fundamentally driven market environment is supportive of alpha generation.

Nonetheless, Bilton emphasised that “active asset allocation is important, but so too is selecting the right manager.” The report also adds that “improved alpha opportunities and worsening beta underline our view that manager selection remains the critical driver of return.” In conclusion, high prevailing equity valuations are likely to hurt benchmark-hugging funds, but the lower correlation across individual stocks will present opportunities for experienced stock pickers.

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

Latest Articles

Double Win for Accendo

Activist investor Accendo Capital maintains a concentrated portfolio of six holdings, making its overall performance highly sensitive to developments within individual investments. The fund delivered...

Crypto Climbs, Copper Crumbles: A Mixed July for Nordic CTAs

The NHX CTA Index posted another monthly gain in July 2025, as steady profits in soft commodities and equity indices managed to offset balance...

Strong Five-Year Run Fuels Excalibur’s Return to SEK 1 Billion AUM

Excalibur Fixed Income has regained the SEK 1 billion mark in assets under management for the first time since 2019, driven by a strong...

Quirky Questions for Dr. Alexander Mende (RPM)

Not every conversation in the hedge fund world needs to revolve around trend signals, Sharpe ratios, or manager due diligence. In HedgeNordic’s ongoing Quirky...

Elementa Tops Swedish Hedge Fund Universe in H1

After celebrating its ten-year anniversary in March, long/short equity fund Elementa closed the first half of 2025 as the best-performing Swedish hedge fund, delivering...

Asgard Winds Down Macro Strategy, Refocuses on Fixed Income

Less than a year after the launch of Asgard-Steno Global Macro Fund – a collaborative effort between macro strategist Andreas Steno Larsen and fixed-income...

Allocator Interviews

In-Depth: High Yield

Voices

Request for Proposal

- Advertisement -
HedgeNordic
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.