With hedge funds completing an impressive 12-month turnaround that ranged from the massive redemptions and poor performance of Q109 to record breaking performance gains and net inflows of investor allocations by Q409, the firm expects hedge funds to continue to build on this rally in confidence into 2010.
Investors returning to the markets have favored more liquid strategies, as well as those that are transparent and easily understood. This has meant that long/short equity strategies have seen the bulk of inflows and it is no coincidence that the majority of new fund launches in 2010 have been equity l/s strategies. Assets returning to hedge funds in 3Q09 heavily favored equity l/s strategies, with those managers logging gains of $221bn (according to BarclayHedge), approximately $64bn ahead of the next most popular strategy (emerging markets).
The firm is bullish on fundraising for hedge funds, comparing 2010′s possibilities for rebuilding the asset base of the industry to 2004′s growth after the market rebound of 2003. “This year has the potential to be impressive from a capital-raising standpoint,” says the team.Back to News