Wealth Management Videos

David Elms on How Market Mayhem Is Again Making the Case for Multi-Strategy

David Elms of Janus Henderson explained why the current market turbulence—driven by geopolitical tension, equity sell‑offs and rising bond yields—creates a fertile environment for multi‑strategy funds that can offer neutral, low‑correlation exposure. He highlighted the Global Multi‑Strategy Fund’s design, emphasizing its historically low correlation to equities and other asset classes, which becomes especially valuable when markets turn lower. The conversation covered several niche strategies. In convertible arbitrage, the team hedges macro credit risk while targeting AI‑related capital raises. Equity repo has steadied thanks to new balance‑sheet providers and anticipated U.S. bank deregulation, improving funding conditions. Dispersion bets have shifted toward higher stock correlation, and market‑neutral managers face “degrossing” pressures that compress long‑short positions. Elms cited concrete examples: AI infrastructure firms flooding the convertible market, a $2.5 trillion private‑equity dry‑powder backlog that will eventually spark merger‑arbitrage activity, and a systematic long‑volatility strategy that profited from the Japanese carry‑trade unwind and the recent oil price rally. He also described a forthcoming commodity‑equity product paired with a trend‑following overlay designed to amplify upside while providing protection during downturns. For investors, the takeaway is clear: diversifying into multi‑strategy and alternative assets can cushion portfolios against heightened volatility and provide upside in sectors like AI, private‑equity deal flow, and commodities. As credit conditions tighten and macro uncertainty persists, low‑correlation, defensively hedged strategies are likely to attract growing capital allocations.