Why invest in Hedge funds?
While there is sometimes greater risk investing in hedge funds, there is also the potential for higher returns compared to traditional investing.
Using sophisticated investment methods, hedge funds may reduce market risk by targeting uncorrelated, absolute returns.
There are various hedge fund investment strategies that could offer diversification benefits for investors’ portfolios.
Capital at risk. Hedge Fund investments can be speculative and use leverage, which may magnify potential losses. They can also be subject to illiquidity, volatility and counterparty risks.
Why wellington?
Harnessing nearly 30 years' experience as a hedge fund manager, we bring investment skill and deep resources to the pursuit of a range of client objectives across vehicle structures.
Ability to attract elite alternatives investment talent
Across nearly all areas of the capital markets, including trading, brokerage and technology
Deep, expansive research platform with global footprint
The foundation of our culture provides a broad view of opportunities and risks
All figures as of 30 June 2024.
Our capabilities
Wellington uses a variety of investment techniques across our range.
Every investor wants something different and something that is not heavily correlated to equity markets.
insights
“Goldilocks” and the three drivers of hedge fund outperformance
Members of our Investment Strategy & Solutions Group explain why shifting economic conditions may bode well for hedge funds broadly but also see reasons that manager selection may be more important than ever.
What the yen carry trade unwind could mean for markets and the Fed
Brij Khurana explains why market participants are likely underestimating how foreign ownership of US assets could constrain the pace and magnitude of the Fed’s cutting cycle.
Global macro strategies: Multi-dimensional tools for an era of economic change
With the global economic environment creating potential opportunities for macro investors, we consider the heterogeneity of the global macro strategy universe, the case for combining different styles, and the choice between a single- and a multi-portfolio manager approach.
Investing in “3D”: Forces shaping alternatives opportunities in 2024
Multi-Asset Strategists Adam Berger and Nick Samouilhan offer six ideas from the hedge fund and liquid alternatives investment space, from global macro to multi-strategy approaches.
Alternative Investment Outlook
This collection provides timely ideas across the spectrum of alternative investments -- including hedge funds, private equity, and private credit.
Governments have been slow to reduce their fiscal deficits — it could cost them
Our expert explores the investment implications of continued excessive deficit spending by G7 countries.
Can hedge funds play the role?
How should investors select the most suitable types of hedge funds for specific roles? Members of our Investment Strategy & Solutions Group offer a simple and intuitive framework that can help.
Embracing uncertainty: Three alternatives ideas for a macro-driven world
Even as investors wrestle with the economic unknowns heading into 2024, Multi-Asset Strategists Nick Samouilhan and Adam Berger see opportunities to put alternative investments to work.
Macro implications of the AI revolution: is the market right?
Macro Strategist John Butler sets out an initial framework to help answer key questions about the potential macro impact of artificial intelligence.
Long/short investing in European equities' growing dispersion
We explore how growing dispersion in European equity markets is driving opportunities for long/short investors, fueled by structurally higher inflation, changing market leadership, and a renewed focus on valuation.
Financials amid rising dispersion
We explore why we believe dispersion across stocks, sectors, and geographies is supporting numerous secular themes in long/short investing in financials.
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FREQUENTLY ASKED QUESTIONS
Hedge fund investing includes varying investment strategies and styles used to achieve investment goals. Using sophisticated methods, hedge funds can access all asset classes.
Hedge funds tend to be riskier but have potential for higher returns than mutual, or open-end, funds. Hedge funds are normally only available to professional investors, while mutual funds are usually more accessible to retail investors.
An example of a hedge fund, that is available as an open-end fund, is the Wellington Global Total Return Fund. It uses long/short credit investing, seeking to profit from both rising and falling bond prices. The goal for absolute return strategies such as this, is to reduce exposure to the overall direction of capital markets. Capital at risk.
