Gayeski: Hard to Define What Went Wrong in Hedge Funds

The video discusses the challenges faced by investors due to poor returns and market conditions. It highlights the impact of policy interventions on macro strategies and the struggles of event-driven strategies amid declining M&A volumes. The video also explores opportunities in cash flow generative strategies, emphasizing structured credit and mortgage-backed securities as potential areas for better returns.

What was one of the main reasons for the poor performance of event-driven strategies?

• Crowded healthcare space

• High inflation rates

• Lack of investment opportunities

• Low interest rates

Why are the conditions for activists not as favorable today as they were two years ago?

• Improved regulatory environment

• Higher interest rates

• Decline in M&A volumes

• Increased competition from new entrants

What is a significant risk to event-driven strategies as mentioned in the transcript?

• Rising inflation

• Bear market risk

• Currency fluctuations

• Technological disruptions

What type of strategies are highlighted as having better opportunities in the current market?

• Growth stocks

• Cash flow generative strategies

• Cryptocurrencies

• Emerging markets

What is a key advantage of structured credit and mortgage-backed securities in the current market?

• High liquidity

• Low credit quality

• Wide spreads and better credit quality

• Government backing