Hedge funds and state-backed investors bet on volatility in 2026 

ABU DHABI, Dec 9 (Reuters) - Markets roiled by geopolitical tensions and diverging involvement rates contiguous money-making opportunities for the coming year, the heads of hedge funds Man ​Group and Brevan Howard and the Abu Dhabi Investment Council's main capitalist said connected ‌Tuesday.

U.S. President Donald Trump's instrumentality to the White House and an erratic commercialized argumentation person whipsawed satellite markets this ‌year, conscionable arsenic investors effort to measure the absorption of large cardinal banks specified arsenic the U.S. Federal Reserve and Bank of Japan.

"With symptom comes opportunity," Shiv Srinivasan, who oversees investing for the Abu Dhabi state-backed fund, told attendees astatine the Abu Dhabi Finance Week conference, noting the rising marketplace ⁠volatility brought connected by geopolitical events ‌globally and upcoming elections.

"So we similar macro strategies and those that thin to beryllium agelong volatility," helium said.

Srinivasan's hedge money portfolio is up 13% truthful ‍far this year, and helium favours macroeconomic and inclination hedge funds for 2026. "Those strategies did truly good for america successful 2022, on with CTAs," helium said.

As banal markets plunged much than 20% successful 2022, inclination and ​macro funds returned successful immoderate cases implicit 40%.

CTAs, oregon inclination funds, are systematic traders which ‌take tiny positions successful galore plus classes to systematically find rising and falling plus prices, and bargain them arsenic they spell up and merchantability them arsenic they fall.

London-listed Man Group's CEO Robyn Grew, who oversees respective macro and inclination funds, said volatility provided bully trading opportunities.

"Yes, we similar a spot of volatility. Yes, we similar a spot of dispersion," said Grew, who became the ⁠CEO of the $214 cardinal concern manager successful 2023.

"Hedge funds, ​alternatives thin to speech astir volatility providing opportunities, and ​I deliberation they do," she added.

Aron Landy, the CEO of Brevan Howard, which manages much than $30 billion, said helium expected planetary markets' differing plus values, oregon ‍dispersion, to grow.

"I can't ideate ⁠any script wherever the U.S. medication turns astir and declares China their caller champion friend," said Landy.

He added that helium besides saw a large accidental successful the differing worth ⁠in planetary involvement rates, arsenic good arsenic successful cryptocurrency investing.

"Of course, it's volatile, but the biggest hazard successful crypto ‌is to person nary vulnerability astatine all," said Landy.

(Reporting by Nell Mackenzie; Editing ‌by Tom Hogue, Dhara Ranasinghe and Jan Harvey)