The Evolution of Hedge Fund Performance: From Return Enhancer to Portfolio Diversifier

In this episode of J.P. Morgan's Making Sense podcast, recorded on October 1, 2026, two executives discuss how hedge funds are evolving in 2026. Institutional investors are increasingly positioning hedge funds as portfolio diversifiers rather than pure return enhancers. They also address the debate around leverage and crowding, investor innovations in managing exposure through portfolio leverage and customized baskets, and the relationship between the macro environment and hedge fund positioning.