With both the pandemic and inflation proving longer lasting than many had anticipated, what does that mean for central bank policy in the months ahead?

Heading into the second half of the year, pandemic concerns are not completely in the rear-view mirror.

Pricing dislocations and adjustments between companies, industries, regions and asset classes due to the impact of COVID-19 offer opportunities for select hedged strategies, according to K2 Advisors.

Pricing dislocations in Europe, performance dispersion across the credit spectrum and shifts in the political landscape should likely provide abundant opportunities for select hedge strategies in the year ahead, according to K2 Advisors. The team shares some macro themes and questions its focused on, and shares its outlook for various hedge strategies.

In their fourth-quarter (Q4) 2018 outlook, K2 Advisors’ Research and Portfolio Construction teams take a deeper look at alpha, and why they feel it’s misunderstood. They believe offering these insights will help investors better understand the rationale for owning retail mutual funds that invest in hedge strategies.