Investors in event-driven strategies told to look for manager with extensive hat collection
| Nov 30th, 2010 | Filed under: Hedge Fund Industry Trends, Today's Post | By: Alpha Male |
|
When you think about it, most hedge fund strategies can be described in terms of going long on a specific security while simultaneously shorting another (outright or against the long). Long/short and market neutral managers go long on stocks they think will rise relative to their short picks. Similarly, global macro managers are generally interested in long appreciating markets with higher interest rates and short depressed markets with relatively low cost of borrowing. Meanwhile, convert arbitrage managers generally go long for converts and short the underlying equity. Emerging market funds are generally on the sidelines or are net-long emerging market equities. In other words, the basic construction of these strategies is pretty much constant.
To continue reading this article please login (at the right) or click here to learn more about accessing our archives.
Related Posts
- Bye-bye beta-driven opportunities, hello diversity for hedge fund investors
- EVENT: Portable Alpha & 130/30 Strategies 2007
- Event: Implementation Strategies for Alpha Beta Separation & Portable Alpha
- EVENT: Second Annual Alpha Generation Forum
- Manager suggests possible conflict of interest in Liability-Driven Investing
