Traditional Managers Have ‘Nowhere to Hide.’ Can Hedge Funds Pick Up the Slack?

With fixed income falling short in protecting on the downside, TIFF Investment Management is betting on hedge funds to help diversify some investment risks.

Despite the bad headlines and their mixed track record, TIFF Investment Management, the $8 billion outsourced chief investment officer for endowments and foundations, will keep betting on hedge funds to soften the blow of market stress.

Traditional Managers Have ‘Nowhere to Hide.’ Can Hedge Funds Pick Up the Slack?

Hedge Funds Offer ‘Happy Medium’ Between Equities, Fixed Income: OCIO

Hedge funds can provide critical protection for institutional portfolios amid the current volatility, according to a recent paper from TIFF Investment Management, an outsourced chief investment officer, or OCIO, that serves mostly nonprofit investors.

Certain hedge fund strategies can provide a “happy medium” between fixed income and equities in investor portfolios, said Zhe Shen, co-portfolio manager for diversifying strategies at TIFF. That’s especially as fixed income – traditionally depended on to provide stability during equity drawdowns – has been experiencing losses along with the equities market, he said.

Read the full article, FundFire: Hedge Funds Offer ‘Happy Medium’ Between Equities, Fixed Income: OCIO