Managed futures/CTAs gaining traction with investors

Research on how investors are protecting themselves from tail risk events shows a preference for managed futures/CTAs. There is also reluctance to use single hedge fund strategies as protection.

Investors seek protection against tail risk events

As institutional investors struggle with ways to make sense of markets whipsawed by central bank and political decisions, finding effective tail risk strategies has come centre stage. Approaches by investors are mixed, with the country of origin influencing decisions and perceptions.

While it is no surprise that institutional investment in funds of hedge funds (FoHFs) has fallen dramatically, hedge funds have not gained as much from the focus on tail risk as expected, according to research* by