ALO25: Master Your Hedge Fund Allocation ft. John Jackson

<p>Join John Jackson, Global Head of Hedge Fund Research at Mercer, and Alan Dunne in this&nbsp;enlightening episode as they dive into the world of hedge fund selection! Discover how a leading institutional consultant selects hedge funds and builds robust portfolios. John shares his insights on why starting with manager selection is key to the portfolio construction process and how he integrates top-down considerations into the mix. The conversation delves into the roles different strategies play in a portfolio, how return expectations are set, and which strategies might thrive in a high-rate, volatile macro environment. John also takes us through Mercer’s rigorous process for researching and selecting new managers, what they look for in a manager, and potential red flags to watch out for. Plus, he sheds light on the importance of emerging managers, the AUM needed for a successful launch, and why he’s passionate about discovering these managers early on.&nbsp;</p><p><strong>-----</strong></p><p><strong>50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - </strong><a href="https://dunncapital.com/DUNN%2050-Year%20Book-TTU" rel="noopener noreferrer" target="_blank"><strong>CLICK HERE</strong></a></p><p>-----</p><p><br /></p><p>Follow Niels on <a href="https://twitter.com/toptraderslive" rel="noopener noreferrer" target="_blank"><strong>Twitter</strong></a>, <a href="https://www.linkedin.com/in/nielskaastruplarsen" rel="noopener noreferrer" target="_blank"><strong>LinkedIn</strong></a>, <a href="https://www.youtube.com/user/toptraderslive" rel="noopener noreferrer" target="_blank"><strong>YouTube</strong></a><strong> </strong>or via the <a href="https://www.toptradersunplugged.com/" rel="noopener noreferrer" target="_blank"><strong>TTU website</strong></a>.</p><p><strong>IT’s TRUE </strong>? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written&nbsp;<a href="https://www.toptradersunplugged.com/Ultimate" rel="noopener noreferrer" target="_blank"><strong>here</strong></a>.</p><p>And you can get a free copy of my latest book “<strong>Ten Reasons to Add Trend Following to Your Portfolio</strong>” <a href="https://www.toptradersunplugged.com/10-reasons-shownotes" rel="noopener noreferrer" target="_blank"><strong>here</strong></a>.</p><p>Learn more about the Trend Barometer <a href="https://www.toptradersunplugged.com/resources/market-trends/" rel="noopener noreferrer" target="_blank"><strong>here</strong></a>.</p><p>Send your questions to&nbsp;<a href="mailto:info@toptradersunplugged.com%22%20%5Ct%20%22_blank" rel="noopener noreferrer" target="_blank">info@toptradersunplugged.com</a></p><p>And please <strong>share this episode</strong> with a like-minded friend and <strong>leave an honest Rating &amp; Review</strong> on&nbsp;<a href="https://www.toptradersunplugged.com/reviewttu" rel="noopener noreferrer" target="_blank"><strong>iTunes</strong></a>&nbsp;or <a href="https://open.spotify.com/show/2OnOvLbIV3AttbFLxuoaBW" rel="noopener noreferrer" target="_blank"><strong>Spotify</strong></a> so more people can discover the podcast.</p><p>Follow Alan on <a href="https://twitter.com/alanjdunne" rel="noopener noreferrer" target="_blank"><strong>Twitter</strong></a>.</p><p>Follow John on <a href="https://www.linkedin.com/in/john-jackson-cfa-01b59527/" rel="noopener noreferrer" target="_blank">LinkedIn</a>.</p><p><strong>Episode TimeStamps: </strong></p><p><strong>02:37 - </strong>Introduction to John Jackson</p><p><strong>05:40 - </strong>A changed environment for hedge funds?</p><p><strong>08:42 - </strong>Best strategies for a high rates environment</p><p><strong>11:50 - </strong>Are clients stuck in the past?</p><p><strong>13:40 - </strong>A framework for building hedge fund allocations</p><p><strong>18:13 - </strong>More art than science</p><p><strong>19:15 - </strong>Define your objectives clearly</p><p><strong>20:51 - </strong>A multi-strat dominance - pros and cons</p><p><strong>25:14 - </strong>Getting comfort in your hedge fund strategies</p><p><strong>28:32 - </strong>How to incorporate diversifying strategies in your portfolio</p><p><strong>30:48 - </strong>How Jackson approaches return expectations</p><p><strong>33:13 - </strong>Typical number of managers</p><p><strong>34:00 - </strong>The role of hedge funds</p><p><strong>35:44 - </strong>Their process of selecting managers</p><p><strong>38:56 - </strong>What makes an opportunity compelling to them?</p><p><strong>43:28 - </strong>How they trade in the systematic space</p><p><strong>45:10 - </strong>Quant managers - are they any different?</p><p><strong>47:08 - </strong>AI and machine learning in the quant space</p><p><strong>49:25 - </strong>How important is transparency?</p><p><strong>50:54 - </strong>Their process of deselecting and changing their manager roster</p><p><strong>54:07 - </strong>Identifying talents in the manager space</p><p><strong>56:18 - </strong>How much capital is needed to launch a macro fund?</p><p><strong>57:52 - </strong>The pros and cons of committees</p><p><strong>01:00:21 - </strong>Getting through the committee</p><p><strong>01:02:12 - </strong>Advice for other investors</p><p>Copyright © 2025 – CMC AG – All Rights Reserved</p><p>----</p><p><strong>PLUS:</strong> Whenever you're ready... here are 3 ways I can help you in your investment Journey:</p><p><strong>1. eBooks that cover key topics that you need to know about </strong></p><p>In my eBooks, I put together some key discoveries and things I have learnt during the more than 3 decades I have worked in the Trend Following industry, which I hope you will find useful. <a href="https://www.toptradersunplugged.com/resources/ebooks/" rel="noopener noreferrer" target="_blank"><strong>Click Here</strong></a></p><p><strong>2. Daily Trend Barometer and Market Score </strong></p><p>One of the things I’m really proud of, is the fact that I have managed to published the Trend Barometer and Market Score each day for more than a decade...as these tools are really good at describing the environment for trend following managers as well as giving insights into the general positioning of a trend following strategy! <a href="https://www.toptradersunplugged.com/resources/market-trends/" rel="noopener noreferrer" target="_blank"><strong>Click Here</strong></a></p><p><strong>3. 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