Institutions Eye Portable Alpha for Hedge Fund Allocations, But Performance Concerns Remain

(Opalesque) Hedge funds lackluster performance in recent years has cost them both clients and money. But for institutions with return targets, bailing on hedge funds is easier said than done. As a result, some institutions have changed how they allocate to hedge funds but without performance improvements, it will be hard for them to stay. Antonis Mistras, managing director, alternative investments at DuPont Capital says hedge funds are at a crossroads. In a recent note, he argues now that central bank influence on markets is beginning to wane and volatility is returning to more normalized levels, hedge funds will have to prove that they can outperform.

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