Volatility is quickly becoming the defining theme of global markets—and some of the world’s largest hedge funds and sovereign investors are gearing up to capitalize on it in 2026.
At Abu Dhabi Finance Week, senior leaders from Man Group, Brevan Howard, and the Abu Dhabi Investment Council highlighted how geopolitical fractures, shifting interest-rate paths, and unpredictable U.S. trade policy are opening new opportunities for macro-driven strategies.
With President Donald Trump returning to the White House, markets have been rattled throughout the year, leaving investors uncertain about the direction of major central banks including the U.S. Federal Reserve and Bank of Japan.
“With pain comes opportunity,” said Shiv Srinivasan, Chief Investor of the Abu Dhabi state-backed fund, pointing to heightened volatility triggered by global tensions and upcoming elections.
🔹 Macro & Long-Volatility Strategies Gain Momentum
Srinivasan noted that his hedge fund portfolio is up 13% this year, and he remains confident in macro and trend-following strategies heading into 2026. These approaches performed exceptionally well in 2022, with certain macro and CTA funds delivering 40%+ returns during periods when global equity markets fell more than 20%.
CTAs—systematic trend strategies—take diversified positions across asset classes, buying into rising markets and shorting those in decline.
🔹 Market Dispersion Creates Trading Opportunities
Robyn Grew, CEO of Man Group (AUM: $214B), reinforced that volatility continues to fuel attractive trading setups.
“Yes, we like a bit of volatility. Yes, we like a bit of dispersion,” she said, emphasizing how differentiated market movements support alternative strategies.
Aron Landy, CEO of Brevan Howard (AUM: $30B+), echoed the sentiment, predicting that global asset-price dispersion will widen further.
He doubted any scenario in which the U.S. dramatically improves its stance toward China, indicating geopolitical risk will remain elevated.
🔹 Crypto Exposure Seen as Increasingly Essential
Landy also pointed to asymmetric opportunities in interest-rate divergence and cryptocurrency markets.
“Of course, it’s volatile, but the biggest risk in crypto is to have no exposure at all,” he said.
As investors navigate an environment shaped by geopolitical shocks and diverging monetary policy, 2026 is shaping up to be a year where volatility is not just a challenge—but a core source of alpha for those positioned to capture it.