Hedge Funds: Gamble or Guardrail?

In late July, the AI-focused hedge fund Situational Awareness collapsed from roughly $45 billion to around $10 billion in days.

That fund ran a concentrated equity long/short strategy: long the chips and infrastructure behind the AI boom, short the software names seen as vulnerable to it. One thesis, heavy leverage, and nothing to cushion it when the trade turned.

Multi-strategy hedge funds sit at the opposite end of the risk spectrum, combining multiple uncorrelated strategies inside a single fund. Multi-strats are built to offer:

That last point shows up most clearly in the data. Across the largest monthly S&P 500 declines from 2014 to 2024, multi-manager platforms held roughly flat-to-positive when equities dropped sharply. 

How? By hedging broad market risk, running market-neutral strategies, and enforcing risk controls that isolate individual trades from market direction.

It’s worth remembering that hedge funds were named for what they were built to do: hedge risk. The multi-strategy model stays truest to that idea.

Read our full primer: Multi-Strategy Hedge Funds Investment Guide

We polled 320+ high-net-worth Long Angle members asking if they’re using a GLP-1 medication for weight loss or other conditions. We asked the same question a year ago, and were curious if adoption trends have changed since the first weight loss pills were introduced.

The results held remarkably steady. Current use of Ozempic, Wegovy, Zepbound or similar medications ticked up slightly, from 20% to 24% of respondents. 

The discussion thread was overwhelmingly positive, with users describing durable results and several down 60 to 110 pounds. Beyond weight loss, respondents reported lower blood pressure and resting heart rate, along with treating diabetes, high cholesterol, and even chronic pain and migraines. Several predict low-dose use for metabolic health will become mainstream within a decade. 

Cost and access came up repeatedly and are trending favorably, with one member noting an Ozempic pen's cash price has fallen from ~$998 in 2024 to $349 today. Side effects were generally described as mild, and the clearest consensus was to work through your own physician rather than online outlets or compounded, non-FDA-approved sources.

Private markets can offer diversification and returns you won't find in public indices, but the same features that create the upside carry traps. Here are four to look out for:

Not all private strategies diversify. Late-stage venture and growth equity can move closely with public tech stocks, especially in downturns when correlations rise across asset classes.

Manager dispersion cuts both ways. The gap that produces exceptional top-quartile returns also means bottom-quartile managers can deliver less than an index fund would have, with far less liquidity.

Bad actors are a real risk. Private markets face less transparency and scrutiny than public ones. Without proper diligence, investors can be exposed to misrepresented track records, obscured fees, or misused capital.

Fees are steep. A low-cost ETF charges a fraction of a percent; a private fund often charges 2% annually plus 20% of profits. The illiquidity premium has to clear that hurdle.

The common thread: careful due diligence before committing capital is critical.

New to private markets, or need a refresher? Read Long Angle's Private Markets Terminology Guide

Every week, we welcome a new group of members, and the range of backgrounds is a big part of what makes the community work. A snapshot from last week's cohort:

They join executives, investors, and professionals across the US and around the world, all navigating the financial and personal sides of building wealth.

See if Long Angle is a fit for you. Learn more about membership.

Chris Bendtsen

Insights Lead, Long Angle

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