The Outcomes on Assessment Of Geopolitical Risk Of Hedge Funds

Bachelor of Commerce

This research examines the implications of hedge fund geopolitical risk (GPR) analysis with a focus on four drivers: political stability, regulatory framework, geopolitical tensions, and sector-specific effects. The study examines the dimensions in two developed economies—Australia and Singapore—and two developing economies—Malaysia and Egypt—to analyze how hedge funds incorporate geopolitical factors into investment-focused decision making and risk management tactics. Through a blend of qualitative policy analysis and quantitative performance analysis of hedge fund investments, the study identifies striking disparity in measurement and mitigation of geopolitical risk based on whether a nation is developed or developing. Institutional resilience and open regulatory systems in developed economies enable improved political stability and sectoral risk modeling, which results in greater consistency of fund performance. In developing economies, uncertain geopolitical tensions and regulatory ambiguities create challenges for risk assessment but also present opportunities for greater returns for well-informed local-focused funds. Sectoral analysis reveals energy, infrastructure, and technology investments as extremely sensitive to geopolitical changes.

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