Eye On The Market The Deep End: 2025 Alternative Investments Review
60 snips
Dec 2, 2025 Expect insights on the explosion of $150 billion in borrowing by hyperscaler data centers and its credit market implications. Dive into the struggles of private equity with unmonetized portfolios and longer holding periods. Explore the recovery signs in capital markets and the performance of hedge funds amidst crowded conditions. Discover the impact of work-from-home trends on real estate and the surge in retail fundraising for alternative investments. Finally, consider the risks of litigation as alternatives become more accessible.
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Top-Venture Funds Drive Outperformance
- Limited partners must consistently access top-quartile venture funds to beat the S&P 500.
- The big gap between average and median venture returns shows a small group drives most outperformance.
Compare Hedge Funds On Risk-Adjusted Basis
- Build a diversified hedge fund sleeve (about 20 funds across styles) to collapse volatility and gain correlation benefits.
- Match hedge fund risk to volatility-adjusted benchmarks when judging performance, not absolute returns alone.
Hedge Fund Crowding Is Elevated
- Hedge funds show record levels of asset crowding and concentration in high-beta hyperscaler momentum stocks.
- A crowding index is at a two-decade high, raising momentum and liquidity risks.