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BlackRock calls for greater hedge fund allocations amid rising market dispersion
Hedge funds should play a more central role in institutional portfolios as rising market dispersion and AI-driven disruption create new opportunities for active managers, according to BlackRock's Fall 2026 Hedge Fund Outlook. The report argues that traditional stock-bond diversification has become less reliable amid persistent inflation, rising government borrowing and increased corporate debt issuance. BlackRock expects these conditions to create greater pricing disparities across markets, strengthening opportunities for macro, relative value and systematic hedge fund strategies. BlackRock Sy