Beverly Chandler, Opalesque London: Allenbridge Investment Solutions has published its Hedge Fund Outlook for 2013 opening with the observation that
2012 represented a year of modest gains for hedge fund
investors with the HFRI Fund weighted composite index
recording a gain of 6.2% during 2012. "This was another
year when the aggregate return from hedge funds
represented a disappointment to traditional investors
in this asset class" Allenbridge writes.
The disappointing returns served to highlight the importance
of astute manager selection, the firm believes, as a number of managers
produced very strong returns. "In addition it was a
reminder to investors that absolute return strategies
targeting 5% over cash will produce just 5-6% when cash
is at zero."
The firm found that across the different strategies, long
biased credit approaches were the strongest performers
as Central banks’ purchases of government and
government backed securities fuelled the rally across
investment grade and high yield markets. "By way of
example the strongest performing hedge fund sector
was the HFRI RV Fixed income asset-backed which was up
16.5%. Both the convertibles and corporate indices were
not far behind recording near double digit gains.
Within the equity long/short spectrum, funds delivered
mid-single digit gains in aggregate however there was
a wide dispersion between ......................
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