The Hedge Fund industry represents a large percentage of total assets within alternative investments, and institutional investors still maintain substantial allocations to hedge funds. However, the way institutions use hedge funds has shifted. Today, those hedge funds favored by institutional investors have roughly half the beta to public equities as the rest of the industry. As an allocation within the diversifying bucket of portfolios, these low-beta, risk-mitigating hedge funds have been quietly performing well. Download the paper to learn more.
