Hedge fund investors back equity long-short for 2016
Equity funds that can profit from both rising and falling markets and rivals betting on macroeconomic trends are expected to outperform in 2016, a Deutsche Bank survey of investors managing $2.1 trillion in assets showed.
When asked to name their three top strategy picks for the year, 40 percent of 504 global hedge fund investors surveyed backed the so-called fundamental equity long-short strategy to lead the performance charts.
In second place, with votes from 35 percent of investors, was the discretionary macro strategy, which involves bets on markets including rates, currencies and commodities, the survey released on Tuesday showed.
On the flip-side, 27 percent of investors surveyed expected distressed credit to be among their three worst-performing strategies come year-end, followed by activist investing, which 25 percent felt would underperform the most.