Hedge funds in Q1 2022 were buffeted by rises in inflation rates, changes in monetary policy, geopolitical tensions and soaring energy prices. While overall hedge fund performance declined this quarter, they were still able to partially shield investors from the volatility.
Within the asset class, performance was mixed, with equity strategies lagging behind, while macro strategies and CTAs delivered positive results in each month of Q1 2022. Getting the allocation strategy right is critical to obtaining the best performance from hedge fund investments. Preqin Pro data reveals that the number of investors intending to allocate more capital to larger fund sizes in the coming year has grown since 2021, reflecting that investors understand the value that hedge funds can bring to their portfolios.
Read our Q1 2022 Hedge Funds Quarterly Update for a look into performance, fund launches, fund managers, and investor fund searches.