Asian investors turn to hedge funds

HEDGE funds are attracting fresh capital from Asian investors looking beyond traditional stocks and bonds, with volatile debt markets, geopolitical uncertainty and growing concerns about concentration in artificial intelligence (AI) shares prompting a rethink of portfolio strategies.

The trend could gather pace as pension funds, family offices, sovereign investors and private banking clients seek more flexible ways to manage volatility and preserve returns, although the growing role of hedge funds in financial markets also raises questions about how they might amplify losses when conditions deteriorate.