1056 GMT - The current environment of higher interest rates could support hedge funds' performance, UBS Global Wealth Management strategists say in a note. "Historically, such a global policy environment has been favorable for hedge funds," they say, Hedge funds "generated positive cumulative returns during every Federal Reserve tightening cycle since 1994," they say. Nonetheless, higher interest rates don't guarantee strong hedge fund performance, they say. UBS strategists recommend diversified exposure to select hedge fund strategies.