Bonds have historically cushioned equity losses — but that relationship has become less reliable as rates and rate volatility have risen. This Brief examines how multi-strategy hedge funds have performed when yields rose and bond markets grew more volatile, and what that could mean for future portfolio diversification.
The big takeaway
Bonds no longer cushion equity selloffs
Multi-strategy gained the most from higher yields
High rate volatility is no longer a temporary phenomenon
Multi-strategy delivered strong risk-adjusted returns
Only multi-strategy stayed in the low-loss zone
What to watch from here
Index Definitions
Important Information
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IMPORTANT INFORMATION
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