Barrons – Last year, flexibility was the key to outperforming in hedge funds, according to a study by industry consultant Hennessee Group. In a report out today, it says that managers who keyed on moving as events seemed to dictate rather than business fundamentals or other more general themes, did best in 2010.
Such “directional” hedge fund strategies were the primary drivers of portfolio performance last year, Hennessee found. Behind event-driven managers were those that focused on distressed situations. The third-best performances were turned in by funds taking an emerging markets approach.
