Institutional Allocation To Hedge Funds, Alpha, And Bull Markets

Hedge funds were overshadowed by equities in 2013, but now that there is a dearth of cheap stocks and fixed income still looks unattractive, it may be time to take a second look at including hedge funds in your portfolio. Citi: The easy money is over “We continue to see our clients under-exposed to hedge funds relative to our 16% recommended allocation,” writes Citi’s global head of hedge fund research Eric Siegel. “The current low-yield environment, with equity market rallies over the past few years, argues strongly for adding a source of uncorrelated returns to a diversified portfolio. Simply put,…