Kostas Morsalis

It's because equity hedge funds tend to be more long biased than short.

So they buy stocks more than they bet against them.

But in general, the stock market has been very strong and equity hedge funds have tried to ride that and perform well for their investors.

Hedge funds are having a bit of a moment right now.

Private equity and private credit have struggled with distributions back to investors.

And so hedge funds, which are more liquid, easier access for cash for investors, they've been having a bit of a moment.

But back in 2022, when we had a big bear market, a lot of hedge funds, which are correlated to the market, actually lost a lot of money and investors pulled their money.

So I think one of the lessons that investors should take from this is that hedge funds are quite correlated to markets and they need to be quite careful in how they invest in them.

Because what we've found is that when markets suffer, it's not just your equity portfolio, your bond portfolio, hedge funds can also suffer as well.