Hedge funds faced a challenging half-year during H1 2022 as geo-political and macroeconomic events sparked chaos and a rare, concerted sell-off in stocks and bonds. However, this is not the sudden shock of Covid-hit H1 2020 but rather a steady, negative development during the past three quarters. However, hedge funds have still fared better than US large-cap stocks, for example, and there is an opportunity to take advantage of the volatility and weak economic forecasts and outperform.