Man Group CIO on why multi-strategy hedge funds are still dominating the industry - Financial News London

Man Group's Chief Investment Officer Gregory Bond argues that multi-strategy hedge funds remain the industry's dominant force, driven by their capacity to deliver diversified return streams uncorrelated to equities and bonds. This structural advantage addresses a fundamental institutional investor requirement: accessing multiple return drivers within a single, operationally efficient vehicle.

Multi-strategy funds function as internally managed indices, housing numerous portfolio managers and strategies under unified governance. This architecture contrasts with traditional multi-manager fund-of-funds structures, which often face higher fee drag and operational complexity. By consolidating multiple strategies in-house, multi-strategy platforms enable direct manager collaboration while preserving distinct return sources.

Bond's commentary reflects market momentum in the sector. Hedge fund performance across most strategies proved strong throughout 2025, with managers generating meaningful excess returns above cash and consistent alpha generation. This performance backdrop supports capital flows into the multi-strategy segment, as institutional allocators—including family offices, pension funds, and endowments—seek non-correlated diversification in portfolios increasingly pressured by equity-bond correlation volatility.

The multi-strategy model's durability stems from its ability to satisfy institutional requirements for return diversity without the fee compression and key-person risk inherent in traditional multi-manager approaches. As Man Group's CIO indicates, the combination of low correlation to traditional markets and diversified alpha sources continues positioning multi-strategy funds as a compelling allocator solution within the alternative investment landscape.