WEST PALM BEACH, FL (www.hedgeco.net) – The executives attending the Reuters Hedge Fund Summit believe that hedge funds are likely to continue to push their trading limits in an effort to maintain acompetitive trading advantage against their competitors. The executives also believe that hedge funds will continue to seek for more esoteric trading products. The conference attendees were also toldthat hedge funds have ventured into new trading arenas such as commodities related products like energy and metals and weather derivatives.
Iain Jenkins, managing director of Hedge Fund Intelligence said, �Hedge funds are starting to move into more and more exotic and interesting strategies.� Jenkins added, “This industry is the ultimate entrepreneurial business; they will go wherever opportunities present themselves.”
The executives believe that as more hedge funds move into the mainstream, a split may emerge between those managers trading commodities with lower return potentials and the managers who are venturing into more sophisticated and riskier strategies according to them. Some hedge funds have now moved into the domain of the former Houston giant Enron. Gavin Rankin, head of investment analysis and product management at Citigroup Private Bank said, �There are still a lot of opportunities in commodities.” Rankin added, �Particularly as there is more liquidity now in some of the underlying commodities markets – such as energy.”
George Soros hired Nick Baldwin, a former executive of UK electricity generator Powergen, to advise him on European utility acquisitions. Some managers are also moving into other new frontier such as buying mines, as long as there are no constrains on their ability to achieve returns for their investors.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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