Donald Pepper recently featured in HedgeWeek’s Global Outlook 2025, where they took a selection of leading views on the year’s key Hedge Fund trends. The full article can be accessed here. A summary of Donald’s comments can be found below:

  • For over a decade, while quantitative easing drove interest rates to near-zero and negative levels, investors concluded “there is no alternative” (Tina) to investing in equities. The strategy worked well. But all good things end.
  • Looking to 2025, what might investors consider? Should investors consider taking profits on some holdings? It may be prudent. The S&P 500 has risen 56% from 1 January 2023 to 22 November 2024. An investor could take profits on 20% of their US equity allocation and still maintain 125% of their January 2023 exposure.
  • By many metrics, equity valuations look stretched. There is no guarantee 2022’s performance cannot recur. In 2008, the MSCI Europe fell 43.3%. That required a 76.3% rise just to recover capital. Bonds may not provide safety. Investors might ask: “Is that the best return available in this part of my portfolio?”
  • Enter liquid alternatives – Ucits funds that target cash-plus returns, offering a compelling option for cautious optimists. These funds aim to be uncorrelated with traditional assets, protecting portfolios from market turmoil while targeting returns above the “risk-free” rate from short-term government bonds.
  • The music plays on, but consider banking some recent strong gains. If so, there is a liquid alternative to short-term bonds. Hello Tiala!

The full version of Donald’s comments can be accessed on the Hedgeweek website here.

NEWS

CONTACT

INVESTOR PORTAL