Central banks - notably the Fed and ECB are aggressively raising rates. In part they are reacting to their own mistakes and they, like other institutions, need to evolve and improve.
Defense companies have also long been avoided in ESG portfolios, but several funds added the sector to their holdings due to the war and tensions in Europe
In his 2022 Survey of the Top 50 Hedge Funds, Eric Uhlfelder said the top 50 funds have been generating about the same annualized net returns since inception as they have over the last five years, emphasizing their consistency.
Most tail risk hedge funds utilize similar strategies, but Weinstein and Kris Sidial of newcomer Ambrus Group say their strategies differ from the norm.
Fed Chair Jerome Powell's hawkish speech at Jackson Hole has brought the equity rally to a halt - the next leg down may be caused by Europe, and specifically Italy.