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Investment strategies

Hedge Funds

Our platform leverages extensive company and market access, deep market insights, and cutting-edge risk and quantitative analysis capabilities to help deliver alpha for our clients.

Why hedge funds?

Hedge funds may play several roles in client portfolios including enhancing diversification, generating alpha and mitigating downside risk, especially when equites and bonds are down.

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Alpha generation
Hedge funds have the potential to generate higher returns relative to traditional exposures via the implementation of unique insights or manager skill.
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Downside mitigation
Hedge fund returns are less dependent on market returns, which can help to minimize volatility and investment losses.
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Portfolio diversification
Hedge funds seek to generate idiosyncratic returns with low correlations to broad asset classes, providing a complementary source of return to a typical portfolio.
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Investment access
Hedge funds use diverse strategies to find market inefficiencies, in both liquid and illiquid markets, creating differentiated opportunities for returns.

The alpha opportunity in the new regime

Increased volatility and uncertainty has led to higher dispersion, creating opportunities to generate alpha regardless of market direction in strategies that express both long and short positions. The new regime means a richer opportunity set for active investing.

Micro dispersion

Security dispersion is rising as challenges like higher inflation and borrowing costs create more separation between fundamentally strong companies and those with vulnerabilities. This post-COVID regime shift has introduced an enhanced opportunity set for alpha generation through security selection.
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Macro dispersion

After decades of global interest rate suppression followed by a somewhat synchronized cycle of monetary tightening, macro fundamentals like growth, inflation, and policy have become more divergent and nuanced across countries, creating opportunities to exploit return differences.
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A new era for hedge funds

The hedge fund industry is evolving. Discover why the ability to harness advanced technology - including AI - will define the next generation of hedge funds.
BlackRock Global Hedge conference 2024

Hedge fund platform

Our investment strategies independently pursue alpha, while capitalizing on BlackRock's extensive resources to enhance their financial potential.

Hedge fund platform
Source: BlackRock 12/31/2023

"We have seen strong interest in hedge funds given their ability to deliver uncorrelated sources of alpha irrespective of the environment. In the current market regime, clients are using these strategies in a variety of ways whether in a traditional hedge fund 'bucket,' as an alpha engine in a portable alpha structure, as a complement to traditional assets, and beyond."

Abigail Gold Geller
Managing Director, Alternatives Specialist Team, BlackRock's Institutional Business

Discuss hedge fund opportunities in today’s market

Learn more about how BlackRock’s hedge fund strategies could help you achieve your portfolio goals.
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Our direct hedge fund platform

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Experience
Managing hedge fund capital since 1996 on behalf of global institutions & individual investors.
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Breadth and depth
Portfolio managers independently pursue alpha opportunities while leveraging BlackRock’s resources.
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Investment discipline
Robust, repeatable, research-driven processes form the backbone of our investment teams.

Investment strategies

Direct hedge fund strategies

Hedge Fund Solutions (HFS)

Identifying and selecting the best hedge funds can be hard and labor intensive. HFS’s dedicated investment team has experience and expertise across multiple market cycles building successful hedge fund programs for our investors
Hedge fund solutions

Contact our institutional team to learn more

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