SS&C Blog

BLOGS. December 4, 2024

Resilience Through Diversification and Centralized Risk Management

The multi-manager model has become a staple in the hedge fund industry, distinguishing itself by delivering risk-adjusted returns through a framework combining diversification and risk management. Despite market turbulence and economic uncertainty, this model has shown resilience, particularly during the pandemic. Between 2017 and 2023, firms using this approach saw assets under management (AuM) nearly triple, driven largely by an ability to capitalize on varied strategies while maintaining stability through strong risk controls. In 2022, when public markets suffered significant sell-offs, multi-manager platforms provided a valuable alternative for investors seeking lower volatility and steady performance.