Fed policy is changing and may reshape how we think about valuations, inflation and interest rate policy. The Fed may also increase their supply-side data indicators versus what have traditionally been demand-side. We explain the relevance and nuances of these changes.

In The BEAT for Q3 2026 we highlighted five important themes, amongst others, that we see across the global investment landscape.

As markets grow more complex and the dispersion of outcomes increases, we believe hedge funds will continue to play a valuable role in investor portfolios through 2026, offering the potential to enhance returns, reduce volatility, and provide diversification regardless of the market’s ultimate direction.

Performance is increasingly driven by structural growth drivers rather than cyclical market exposure. Secular themes such as AI, deglobalization, demographic shifts and energy demand are creating clear winners and laggards. This environment reinforces the importance of selectivity, diversification and active capital allocation to capture emerging pockets of outperformance.