HEDGE FUND UPDATE 2022
Hedge funds have seen some of the most volatile markets ever over the course of the last two years.
Sky high inflation numbers, pivoting Fed policy/rate hikes, war, and a vicious tech sell off, have defined the last year or so and different types of funds have made out like bandits, some not so much. Moving forward the funds that succeed will undoubtedly need to get creative and be able to react to coming market conditions on the fly as methods that have worked over the last 12 years are no match for the dark markets macro conditions have created.
We likely will see some more funds blow up before we get a definitive conclusion or result on the broader market sell off and bear market. Just this last week Melvin Capital, the hedge fund involved in the Gamestop short squeeze debacle, announced they are winding down and returning investor funds.
This is meant to be a simple summary of where Hedge Funds sit in 2022. Here’s what we will cover:
2022 Themes
AUM Growth
Inflation based investment opportunities
Digital Assets & Crypto
ESG Initiatives
Pressures on Fees
Fund Technology Stack
If you’re prepping for a hedge fund interview, interested in learning more about the buy side, or simply looking to confirm your feelings on the industry, this will be a solid broad refresher. I include some extra resources/links as well as a quick run down of the openings/roles available at some of the top funds in this edition of Arb Letter.