Capital Allocators – Inside the Institutional Investment Industry CIO Greatest Hits: Hedge Funds – Dan Fagan (GIC), Craig Bergstrom (Corbin Capital Partners), and Adam Blitz (Evanston Capital)
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Aug 18, 2025 Dan Fagan, a hedge fund investment expert from GIC of Singapore, Craig Bergstrom from Corbin Capital Partners specializing in fund of hedge funds, and Adam Blitz of Evanston Capital discussing hedge fund strategies. They share insights on the complexities of capital allocation, emphasizing the significance of skilled manager selection. The trio explores the risks of high leverage and liquidity management while also highlighting opportunities in the emerging manager space and the evolving perceptions of illiquidity in hedge fund investments.
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Hedge Funds As Diversifying Active Bets
- GIC views hedge funds as active diversification that deliver distinct return streams with low stress beta.
- They search globally, strategy-agnostic, and invest only when opportunities are truly compelling.
Prioritize Manager Selection
- Focus bottom-up on manager selection as the primary source of alpha rather than tactical asset allocation.
- Prioritize fundamental strategies and single risk takers where you can develop deep understanding.
Adjust Expectations With Higher Short Rates
- Re-assess expected returns when short rates rise because many hedge strategies earn higher total returns via cash and floating exposures.
- Reconsider allocations for endowments and foundations when hedge funds clear payout thresholds.