Riding the Wave: Top Global Funds Bet on Surging Volatility, Macro Strategies, and Crypto for 2026 Gains

Top figures from the world of finance, including the leaders of major hedge funds and a prominent state-backed investment entity, stated on Tuesday that the markets, characterized by geopolitical turmoil and varying interest rate policies, will present lucrative opportunities in the coming year. These assessments were shared with attendees at the Abu Dhabi Finance Week conference.

The current global investment environment is being heavily influenced by uncertainty surrounding the policies of the returning U.S. President Donald Trump, specifically his unpredictable trade strategy, alongside the yet-to-be-determined direction of key central banks like the Bank of Japan and the U.S. Federal Reserve.

Shiv Srinivasan, who oversees investments for the Abu Dhabi state-backed fund, emphasized this view, stating that "With pain comes opportunity." He pointed to the increase in market volatility stemming from worldwide geopolitical events and upcoming elections. For 2026, he expressed a preference for macroeconomic and trend-following hedge funds, noting that his current hedge fund portfolio is already up by more than $10\%$ (13%) this year. Mr. Srinivasan recalled that these same strategies, along with Commodity Trading Advisors (CTAs), performed exceptionally well in 2022. During that year, while stock markets experienced declines of more than a fifth (20%), certain trend and macro funds generated returns of $40\%$ or more in some cases. CTAs, which are systematic traders, operate by taking minor positions across various asset classes to identify and trade systematically on rising and falling prices.

Robyn Grew, the Chief Executive of the London-listed investment manager Man Group, which manages a portfolio of over $\$200$ billion ($214$ billion), echoed the sentiment that volatility is a source of favorable trading conditions. Ms. Grew, who took on the CEO role in 2023, remarked that her firm welcomes both volatility and the differing values among asset classes, or dispersion, which alternatives and hedge funds typically leverage for profit.

Aron Landy, the Chief Executive of Brevan Howard, which manages a portfolio exceeding $\$30$ billion, predicted that the divergence in asset values across global markets would intensify. He cited the strained relationship between the U.S. and China as a factor, stating he could not envision a scenario where the U.S. administration suddenly establishes a close partnership with Beijing. Mr. Landy also identified significant potential in the difference in global interest rates and in cryptocurrency investments. While acknowledging the inherent volatility of the crypto market, he cautioned that the greatest risk for investors is having no exposure to the asset class at all.