New York (HedgeCo.net) – For the first three months of the year, investor interest in hedge funds revolved around two central themes, according to Brighton House Associates Q1 2011 Research Report (pdf). The first was the increase in corporate activity and the second theme was inflation.
Although investors looked at various types of commodity funds to help hedge against inflation, CTA/managed futures funds seemed to be benefiting the most, as it appears to be an asset class that investors return to time and again as a hedge for their portfolios.
Other highlights include:
– Increase in M&A Spurs Interest in Event-Driven Funds
Consistent positive returns should drive even more investors to event-driven funds. With increasing investor interest, strong returns, and an increasingly busier mergers and acquisitions marketplace, event-driven fund managers are in a strong position to capture a larger share of investor capital going forward.
– Investor Demand for Commodities-Focused Funds Is on the Rise
With prices of both hard and soft commodities on the rise, it seems that demand for funds with commodity exposure will continue to increase. Funds that blend exposure to both hard and soft commodities, as many CTA funds do, will undoubtedly benefit the most not only from ever-rising commodities prices but also investor demand.
– Sector Focus: Internet and Online Technology
Growth in the cloud computing business is another reason investors were attracted to the tech sector. Cloud computing is essentially the remote storage and access of applications and files. As technology users’ preferences shift to mobile, on-the-go applications, their need to access files quickly and remotely has increased.
The battle between tech heavyweights such as Apple, Amazon.com, Google, and Microsoft to offer cloud services should intensify and give rise to new businesses in the cloud computing space. According to an article on Processor.com, cloud computing services revenue should total $56.3 billion for 2009, representing a 21.3% increase when compared with 2008. The market is expected to reach $150.1 billion in 2013.
Editing by Alex Akesson
For HedgeCo.net
alex@hedgeco.net
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