India to China: Where investors managing $3 trn are putting their money

Institutional investors recommend heightened caution and warn of a difficult recovery ahead for the world.

As if the pandemic wasn’t warping global markets enough, China’s regulatory crackdown is suddenly adding new unpredictability. So how best to invest in these strange times?

Bloomberg News spoke with institutional investors with $3 trillion in combined assets under management to ask how they’re navigating economic turmoil caused by unpredictable recoveries and China’s shifting rules, which have frozen U.S. listings and almost erased the online education sector.

Some are ramping up allocations to hedge funds--reversing a years-long retreat--hoping that active management can plot a path through a landscape of Covid-19 lockdowns and rebounds. Others are switching to undervalued stocks in