The era of low-volatility, low-rate, high-return markets is over. As a result, investors are reevaluating their long-standing preference for passive equity exposure and private credit.
Goldman Sachs' latest institutional survey reflects this shift: more capital is flowing toward hedge funds, long/short strategies, and active managers. These aren’t tactical blips—they signal a broader rethinking of risk in a world where geopolitical shocks, inflation volatility, and regulatory disruption are the new normal.
Active doesn’t mean speculative. It means flexible. Investors want managers who can move with markets, not just track them. Portfolio construction is becoming more granular, with downside protection taking center stage.
As someone who’s navigated bear markets and black swans, I believe this shift is healthy. Passive strategies still have their place, but they can’t be the whole picture anymore. Today, the smart money is playing defense while looking for asymmetric upside.
