Hedge funds tracked global equity markets more closely in 2025 than at any point in at least five years, prompting concerns among allocators over the industry’s ability to provide protection during a market downturn, according to a report by Bloomberg citing research from BNP Paribas.
The data shows that the correlation between hedge fund returns and the MSCI World Index reached its highest level since at least 2019, following a prolonged global equity rally that has lifted asset prices for thre...
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