As markets evolve and the traditional 60/40 portfolio faces new challenges, are hedge funds becoming the next core allocation for resilient investing? In this episode of Beyond Markets, William Fong, Head of Alternatives Specialists at Julius Baer for Asia and the Middle East, speaks with Joe Dowling, Senior Managing Director and Global Head of Blackstone Multi-Asset Investing (BXMA), about how the endowment model is reshaping portfolio construction.

Joe shares insights on why institutions have leaned heavily into alternatives, how multi-strategy hedge funds are delivering uncorrelated returns, and what private investors can learn from the playbook of elite endowments. From risk management to the “democratisation of alternatives”, this episode explores how hedge funds may just be part of the new 60/40 for long-term investors seeking durability and diversification.

This episode was recorded on 28 October 2025.

(00:10) - – The endowment model
(03:24) - – Is it limited to institutional investors?
(05:02) - – A typical allocation split
(06:28) - – The importance of a long-term approach
(07:16) - – Recent criticisms of the endowment model
(09:03) - – Hedge funds: a bond substitute?
(11:23) - – The rise of multi-strategy funds
(13:24) - – How multi-strategy funds have performed throughout volatility
(15:13) - – What to look for in a good multi-strategy fund
(16:33) - – Absolute return vs index investing
(18:33) - – Are multi-strategy funds getting too big?
(20:17) - – Are single-manager, single-strategy funds still relevant?
(21:32) - – Rebalancing – a critical element
(22:44) - – Fund manager expertise, and the art of portfolio construction
(27:01) - – Thoughts on private equity and infrastructure
(31:33) - – An ivy league education? Or an alternatives portfolio?

Beyond 60/40: The rise of hedge funds in...