WEST PALM BEACH, FL (HEDGECO.NET) – A new poll conducted by Reuters shows that hedge fund returns over the next six months are likely to show moderate returns, this prediction was based on the recentpoll of fund of hedge funds. Reuters surveyed 15 fund of hedge funds, managing combined assets of about $58 billion for investors. The surveyed group projects above average hedge fund returns overthe next six months. Some managers believe that the stock market activities may pick up in the coming months, and the direction of the world economy will also become clearer.
Nick Hannan, a manager at LCF Edmond de Rothschild Asset Management Limited (LSFR) said, “You’ll see OK returns across lots of things (but) I am not expecting spectacular returns from anything.� Another manager, John Capaldi at Financial Risk Management in London added, “A return to healthier trading volumes and an increase in implied and delivered volatility will assist (most) strategies.�
Most managers in the survey believe that the equity long/short strategy will do well during the next six months; such belief is based on the expectation that a rally may be forthcoming in the equity exchanges. Equity long/short strategy is the most popular hedge fund strategy applied by hedge fund managers. Managers generally take long positions in stocks if they hold positive view of the markets, and they may take short positions if they think otherwise.
Many of the surveyed managers believe stocks will do well during the fourth quarter. Prashant Kolluri at Investcorp said, “Long/short equities should do well in the fourth quarter, but headwinds from slower earnings growth coupled with the impact of higher oil prices should dampen returns next year.�
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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