These are the reasons for the 10% increase in the earnings of “hedge funds” since the beginning of 2021

In an interview with Al-Arabiya, Idris El-Rafei, Head of Middle East and Africa at Aberdeen Standard Investments, explained the difference between the performance of mutual funds with hedge funds, which questThe latter has the burden and cost of caution and hedging, while the former follows the trail of stocks, as well as different investment strategies.

He pointed out that the event monitoring strategy, forecast With acquisitions and mergers it played a positive role, especially with hedge funds, whose earnings increased 10% in the first 8 months of questyear, as the latest report released by the Hedge Fund Research Corporation (HFR) showed that this increase in earnings coincided with the increase in political risks.

The index of performance of the fund globally increased in August for the tenth time in 11 months and the earnings of this index reached around 10% during the first eight months of the year.

Among the most important supports to these gains: the increase in uncertainty about Afghanistan, as well as the continuation of monetary stimulus and the gradual reopening of economies.

Equity hedging strategies, which invest both long and short term through specialized sub-strategies, managed to maintain the recent gains made in August.

Many stock markets have reached levels record, while the volatility of equities remained high.

The Hedge Fund Equity Research Index (total) jumped 1.2% over the month, with strong contributions from the broad dispersion of the performance Sub-strategies driven by high volatility and yield-oriented sub-strategies for long-term investments in the healthcare, technology and energy sectors.

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