ALTERNATIVES

Hedge Funds

Why BlackRock for hedge funds?

Hedge Funds represent a core pillar of BlackRock’s alternatives platform. With over twenty years of proven experience in managing these strategies, our hedge fund platform is differentiated in its combination of skill and scale, delivering solutions that span geographies, asset classes and styles.

We equip our hedge fund managers with the opportunities and tools in order to seek to deliver differentiated alpha in a cost-effective way with a sophisticated approach to risk management through three key advantages.

 

Information advantage
Information advantage
We combine top talent with access to company management and data as well as the technology to process it bringing significant depth and breadth to our research.
Capital markets advantage
Capital markets advantage
We can employ advantages of scale via relationships with the market, accessing liquidity, initial offerings and competitive financing costs.
Risk management advantage
Risk management advantage
We partner closely with our own proprietary internal risk management consultancy (RQA) who provide sophisticated risk management software and processes.

Learn more about hedge funds at BlackRock

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Market landscape

The next 5-10 years will be more challenging than the previous due to structurally lower growth and geopolitical risk. Material downgrade to return expectations over the next 10 years. Clients will need to shift their focus in order to meet clients return and outcome objectives.

Investors need to understand the drivers of portfolio returns and apply the right blend across index and alpha strategies to build resilient portfolios that prioritize cost, risk and time efficiency. Investors need to identify true sources of alpha (beyond factor & market exposures). As a core strategic building block, alternatives bring diversification and long-term risk adjusted returns to a well-balanced portfolio of the future.

Complimentary to traditional portfolios

Optimal hedge fund portfolios seek to emphasize idiosyncratic (e.g., security-specific) sources of return while minimizing broad market risks

Complimentary to traditional portfolios

Source: BlackRock. For illustrative purposes only

Strategies for diversification and downside protection across market cycles

While hedge funds strategies can be effective diversifiers and potential return enhancers, strategies can differ vastly from one another. Holding diversified exposures to multiple hedge funds strategies in the long term, whilst dynamically allocating to short-term opportunities that may present themselves in certain hedge fund strategies as we move across market cycles and regimes.

Strategies for diversification and downside protection across market cycles

Source: BlackRock. For illustrative purposes only.

Meet our team

BlackRock manages US$38bn across a broad range of hedge fund strategies. With over 20 years of proven experience, the depth and breadth of our platform has evolved into a comprehensive toolkit of 30+ strategies.

Leadership

Nigel Bolton
Co-CIO of BlackRock's Active Equity
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Raffaele Savi
Co-CIO of Active Equity and Co-Head of Systematic Active Equity
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Jeff Shen, PhD
Co-CIO of Active Equity and Co-Head of Systematic Active Equity
Mark McKenna
Founder and Global Head of Event Driven
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Stuart Spodek
Managing Director, The BlackRock Obsidian Fund
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David Trucano
Managing Director, Fundamental Credit
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Tom Parker, CFA
CIO of Systematic Fixed Income
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