What Volatility Woes Mean for Hedge Funds in 2019

The video discusses the widening economic growth gap between developed and emerging markets, highlighting market volatility and investment opportunities. It explores hedge fund strategies, emphasizing challenges for trend followers and opportunities for discretionary macro funds. The role of hedge funds in pension funds and endowments is examined, focusing on risk management and returns. The trend of hedge fund closures is analyzed, noting challenges in capital raising and competition from high-frequency trading and quant strategies.

What is expected to widen between developed and emerging markets in 2019?

• Cultural differences

• Economic growth differences

• Technological advancements

• Political alliances

Why are companies looking to make acquisitions during a global economic slowdown?

• To increase market volatility

• To reduce workforce

• To maintain growth levels

• To avoid regulatory issues

Which type of hedge funds are expected to face challenges due to market volatility?

• Venture capital funds

• Private equity funds

• Trend followers, particularly CTAs

• Discretionary macro funds

What was the average size of hedge funds that closed last year?

• $5 billion

• $3 billion

• $1.6 billion

• $500 million

What is a significant challenge faced by smaller hedge funds today?

• High employee turnover

• Lack of investment opportunities

• Raising additional capital

• Excessive regulatory compliance