Singapore's GIC Plans to Invest $30 Billion in Hedge Funds Over Next Three Years

By Megan Cheah and P.R. Venkat

Singapore's GIC aims to deploy $30 billion into hedge funds over the next three years, as part of its continued strategy to capture diversification benefits.

"[Hedge funds are] a good strategy because it provides us with low correlation [to the] other alpha strategies we have," said Bryan Yeo, group chief investment officer of GIC. "As a portfolio, it has low market beta and it diversifies from the traditional equity, fixed income, credit [and] private market strategies as well."

The sovereign-wealth fund has tripled its hedge-fund investments over the past decade and aims to build on this track record, it said Friday.

Having invested in hedge funds for over 20 years, the fund has accrued a good sense of the strong managers, the network and the partnerships, said Yeo. "It's given us the added confidence in customizing certain mandates and working with the managers to deliver value," he said.

GIC intends to meaningfully grow cross-asset investing, managing a combined strategy that brings together hedge-fund plans with traditional stocks and bonds for the best mix of return and risk. It is also targeting more specialist hedge funds focused on particular themes or industries.

The sovereign-wealth fund typically looks for hedge funds with a strong investment philosophy, competitive edge and disciplined risk-management process, Yeo said. It works with these managers to create additional capacity by developing and incubating new strategies.

Global macro, quantitative and multistrategy hedge-fund managers are expected to do well within the highly volatile and uncertain environment, as these types of managers can typically pivot quickly and dynamically manage their risk and portfolio composition profile, he said.

Write to Megan Cheah at megan.cheah@wsj.com and P.R. Venkat at venkat.pr@wsj.com

(END) Dow Jones Newswires

July 23, 2026 17:14 ET (21:14 GMT)