Hedge fund in­vestors back equity long-short for 2016

The Pak Banker - - MARKETS/SPORTS -

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.

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