Hedge Fund Winners and Losers in 2018

The video discusses the challenges faced by hedge funds in 2018, highlighting the impact of rising volatility and political risks, including trade wars and the stance of Donald Trump. It explains how these factors led to poor performance for many hedge funds, while those employing short selling strategies fared better. The video also covers the trend of increasing outflows from the hedge fund industry and the potential for further outflows in 2019. It concludes with a discussion on the future prospects for hedge funds, suggesting that a multi-asset approach could be beneficial if volatility returns.

What was the main factor that negatively impacted hedge fund returns in 2018?

• Stable political environment

• Rising volatility

• Decreasing interest rates

• Increasing commodity prices

Which strategy was beneficial for hedge funds in 2018?

• Investing in cryptocurrencies

• High exposure to emerging markets

• Short selling

• Long-only equity investments

What combination of factors troubled hedge funds in 2018?

• Rising political risks and trade wars

• Decreasing global demand

• Stable currency exchange rates

• Low inflation and high employment

What is the expected trend for hedge fund outflows in 2019?

• Increase

• Decrease significantly

• Fluctuate unpredictably

• Remain stable

How might a multi-asset approach benefit hedge funds in 2019?

• By ignoring market trends

• By focusing solely on equities

• By increasing exposure to a single asset class

• By reducing exposure to volatility