JPMorgan Asset Management raised its 10-to-15-year return forecast for diversified hedge funds by 140bp to 6.7%, the largest upgrade of any alternative asset class in its 31st annual Long-Term Capital Market Assumptions. Most of the increase comes from alpha, which rises from 2.4% to 3.9%, while beta slips from 2.9% to 2.8%. The firm cites higher rates boosting short-position carry, governments unlocking new capital pools, and more frequent policy catalysts creating relative value opportunities, though it admits part of the uplift reflects a methodology change. The report suggests that a 30% allocation to a blend of hedge funds, gold, infrastructure and transport can lift a 60/40 portfolio's Sharpe ratio by 22% as stock-bond correlation becomes less reliable. It also warns that manager dispersion remains elevated, so manager selection is vital.
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Original headline: Hedge funds emerge as winner of JP Morgan AM new …
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JPMorganhedge fundsinvestment trustsasset allocation
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JPM
• NeutralJPMorgan Chase
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Financials |
| Industry | Diversified Banks |
| Market cap | $891.9B |
| Close on 10/20/2026 | 335.39 |
| Change that session | +0.56% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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