New York (HedgeCo.net) – With the world investment markets facing more uncertainty than usual at the beginning of 2016, apparently the most in-demand strategy is market neutral.
Deutsche Bank’s global prime finance group recently surveyed 504 hedge fund allocators and among all the various hedge fund strategies, and the “most in-demand” strategy was equity market neutral. The group of allocators manage or advise on approximately $42 trillion in total assets and $2.1 trillion of that is allocated to hedge funds, so the group as whole is extremely influential.
What the survey found was that 32% of those surveyed expressed that they were looking to increase their exposure to equity market neutral strategies in 2016. The same survey conducted in 2015 showed 17% were looking to increase their allocation to equity market neutral strategies.
Another finding of the survey was that 41% of these allocators expected to increase their hedge fund allocations in 2016 and that figure is up from 36% in 2015.
Rick Pendergraft
Research Analyst
HedgeCoVest