Hedge Funds

Tide May Be Turning For Market Neutral Hedge Funds

by hedgeweek.com posted 8months ago 27 views
Tide may be turning for market neutral hedge funds Submitted By Hugh Leask | 24/06/2020 - 1:34pm Equity market neutral hedge fund strategies could be set for a reversal of fortunes, as trading conditions normalise towards 2020’s midway point. New research by Lyxor Asset Management indicates market neutral managers suffered “underwhelming” returns earlier in the year following rapid stock correlation and sizeable rotations across factors and sectors, with short trades failing to deliver. Now, though, normalising trading conditions could prove more supportive for market neutral funds, as recent bets on smaller cap names and growth factors boost alpha, strategists said this week.

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