BlackRock research arm bigs up hedge funds to investors

The BlackRock Investment Institute believes investors should bulk up their exposure to hedge funds. The research arm of the asset manager suggests investors dedicate up to 5% more of their portfolios from their current levels to hedge fund investments, the highest the institute has ever recommended.

Allocators comfortable with a bit more risk could take money from the stocks portions of their portfolios and instead redirect that money at higher risk hedge funds.
The asset manager side of BlackRock, which also acts as a middleman for investors wanting to spend money on hedge funds, oversees $76 billion in hedge fund assets including direct hedge fund investments and hedge fund-related businesses, the company website says.
U.S. President Trump in August signed a White House order directing regulators to expand access to alternative investments to 401k retirement portfolios, like hedge funds, adding a new layer of risk open to ordinary investors.