Volatility could burnish hedge funds' appeal, say advisers

Korean pension funds wary of the growing market instability and potential economic downturn as early as next year are increasingly turning to hedge funds and other alternatives.

Market volatility may boost hedge fund allocations among the country's institutional investors. A recent Korea Post Insurance mandate reflect rising demand for the asset class.

While the concept of outsourced chief investment officers is new to Asia, there are many asset owners that could be suitable, argue the investment consultants seeking contracts.

With public markets set to face a challenging 2019, institutional investors will need to stay diversified to protect portfolios. A dynamic approach that blends different styles of investing can help.