Singapore’s sovereign-wealth fund, GIC, plans to invest $30 billion into hedge funds over the next three years. This move is part of its ongoing strategy to enhance portfolio diversification and capture benefits from low-correlation strategies. "Hedge funds are a good strategy because it provides us with low correlation [to the] other alpha strategies we have," stated Bryan Yeo, group chief investment officer of GIC.

Yeo highlighted that hedge funds offer low market beta and diversify traditional investments in equity, fixed income, credit, and private markets. GIC has already tripled its hedge-fund investments in the past decade and has over 20 years of experience in the space. This long-standing presence has allowed GIC to identify strong managers, build networks, and foster partnerships, giving them confidence in customizing mandates and delivering value.

The fund intends to expand cross-asset investing, integrating hedge fund strategies with traditional assets for optimal risk and return. GIC is also focusing on specialist hedge funds targeting specific themes or industries. They seek managers with robust investment philosophies, competitive edges, and disciplined risk management, often working with them to build capacity and incubate new strategies.