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Hedge funds and state-backed investors bet on volatility in 2026 
Yahoo Finance· 2025-12-09 08:47
Core Viewpoint - Geopolitical tensions and diverging interest rates are creating money-making opportunities in the financial markets for the upcoming year [1][2]. Group 1: Market Conditions - U.S. President Donald Trump's return and erratic trade policies have caused significant fluctuations in global markets [2]. - Rising market volatility is attributed to geopolitical events and upcoming elections, presenting investment opportunities [2]. Group 2: Investment Strategies - The Abu Dhabi Investment Council's chief investor favors macro strategies and long volatility approaches, with a hedge fund portfolio up 13% this year [3]. - Macro and trend hedge funds performed exceptionally well in 2022, with some returning over 40% as stock markets fell more than 20% [3]. Group 3: Hedge Fund Insights - Man Group's CEO emphasizes that volatility and dispersion in asset prices provide good trading opportunities [4]. - Brevan Howard's CEO anticipates an increase in asset value dispersion in global markets, highlighting the ongoing geopolitical tensions [5]. Group 4: Opportunities in Interest Rates and Cryptocurrencies - There are significant opportunities in the differing values of global interest rates and cryptocurrency investments, despite their volatility [6].