Why Advisors Still Turn to Hedge Funds

Despite Wall Street's growing focus on private equity products for the wealth channel, many advisors continue to rely on hedge funds as a core building block for managing volatility and improving portfolio outcomes for their clients.

In a recent feature with InvestmentNews, Kelly Park Capital CEO Dean Rubino shared his perspective on why hedge fund strategies remain relevant — particularly in an environment defined by elevated rates, dispersion across asset classes, and shifting correlations between stocks and bonds.

"While not all hedge funds 'hedge' in the traditional sense, they generally have flexible mandates that allow managers to adjust exposure; whether through hedging, reducing gross or net exposure, or raising cash. That flexibility stands in contrast to long-only portfolios, which remain inherently directionally exposed."

The article highlights how advisors are increasingly pairing liquid hedge fund exposures with private market allocations to build portfolios that are both resilient and growth-oriented. Rather than choosing one over the other, the modern approach blends both — leveraging hedge funds for downside management and private strategies for long-duration return potential.

Dean's commentary underscores a theme central to Kelly Park Capital's work with advisors: helping wealth professionals access institutional-grade alternatives in a way that aligns with each client's objectives, liquidity needs, and risk tolerance.