WEST PALM BEACH, FL (www.hedgeco.net) – Robust activities in Merger and Arbitrage along with equities may boost hedge fund returns in the coming months according to Swiss Capital Group. The groupalso believes that heavy inflows into hedge funds coming from the Merger and Arbitrage strategy may also hamper the profit level that may be achieved by the global hedge fund industry, particularlythose specializing in Merger and Arbitrage strategies. During the first half of 2005, Merger and Arbitrage strategy suffered significant losses resulting from the downgrading of the bond status ofFord Motors and General Motors.
Swiss Capital Group says its outlook for Merger and Arbitrage hedge funds is neutral-to positive. The Group also said it has a more positive outlook for hedge funds utilizing equity long-short strategies, particularly in the technology and healthcare sectors.
Joerg Ruetschi, a business analyst with the Swiss Capital Group said, “The macroeconomic data continues to make it difficult for hedge funds to spot and play sustainable trends and that may lead to erratic market movements.�
The firm also said that hedge funds following the macroeconomic trends such as global macro strategies and managed futures might continue to struggle for the rest of the year. Swiss Capital Group is an independent specialist in Corporate Finance and Asset Management, focusing primarily on alternative investments and structured products. The Swiss Federal Banking Commission regulates the company.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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