CIO View Hedge Funds

UBS highlights hedge funds as a key strategic allocation in 2026, noting their 4.7% return in April and their ability to provide diversification amid geopolitical risks and equity market concentration.

Key Takeaways

• 1.Hedge funds delivered positive returns in April (+4.7%), outperforming bonds and demonstrating broad-based gains across strategies.
• 2.UBS maintains a preference for Equity Hedge (low-net and market neutral) and Event Driven (merger arbitrage) strategies.
• 3.Hedge funds are viewed as a critical building block to enhance portfolio resilience and diversification in a higher dispersion market environment.

Table of Contents

• CIO View: Hedge funds
• The strategic case for hedge funds: alpha, diversification and resilient compounding
• Positive drivers
• Negative drivers
• Non-Traditional Assets
• Appendix

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