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Hedge funds emerge as ‘winners’ of JP Morgan AM’s new world order
The asset manager’s 2027 long-term assumptions put hedge funds among the biggest beneficiaries of higher rates, policy volatility and widening dispersion. Much of the upgrade rests on alpha rather than market beta. JP Morgan Asset Management has lifted its 10 to 15-year return forecast for diversified hedge funds by 140bp to 6.7%. It is the largest upgrade to any alternative asset class in the firm’s 31st annual Long-Term Capital Market Assumptions . The authors describe the industry as one of the “winners from this new world”. The upgrade runs across every strategy. Event-driven funds rise 19