Why Are Investors Flocking to Credit Hedge Funds?

The video discusses the recent underperformance of hedge funds compared to global bonds, focusing on relative value credit hedge funds. Despite underperformance, these funds have seen significant asset growth due to investor interest in their hedging strategies. The discussion covers market conditions, the use of leverage, and the importance of capital preservation. It highlights the challenges hedge funds face in generating positive returns while preparing for potential market downturns.

What is the significance of the $40 billion mentioned in the context of hedge funds?

What challenges do hedge funds face in generating positive returns while hedging against potential downturns?