SkyBridge’s Gayeski Expects Hedge Funds to Outperform Fixed Income

The video discusses the risks and growth potential of alternative assets, particularly hedge funds, in the context of low global bond yields and negative rates. It highlights the performance comparison between equities and hedge funds, and the potential for hedge funds to outperform fixed income in the future, viewing this as an opportunity rather than a risk.

What is one reason for the growth of alternative assets?

• Negative rates on older assets

• Increased government regulations

• Decreased demand for equities

• High interest rates on traditional assets

How can investors keep up with rising equities according to the video?

• By holding cash reserves

• By diversifying into real estate

• By being 100% long in equities

• By investing in bonds

Why are global bond yields mentioned as a reason for hedge fund allocation?

• They are exceptionally low

• They are exceptionally high

• They are negatively correlated with equities

• They are stable and predictable

What is a characteristic of hedge funds compared to bonds?

• They are less sensitive to the economy

• They are negatively correlated with the economy

• They provide guaranteed returns

• They are more sensitive to the economy

What is the potential of hedge funds in the next several years?

• To be negatively impacted by recessions

• To remain stable with fixed income

• To outperform fixed income globally

• To underperform fixed income