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Komfie Manalo, Opalesque Asia:

A survey of more than 80 hedge fund managers (total AuM above $1tln) found that a majority of them believe that the Federal Reserve would maintain an accommodative stance in 2015 as monetary policy has been a key driver of financial markets over the last few years.

The survey, conducted by Lyxor Asset Management at the end of December last year, said that hedge fund managers remain bullish on U.S. equities for 2015 on the back of accommodative monetary conditions. Almost 70% of the respondents do not expect the Fed to raise rates in the first half of 2015.

"This percentage has increased from 50% in June, when we conducted the previous survey. At the same time, fixed income is not expected to be an attractive asset class in 2015, even if 10-year bond yields in the U.S. should not reach 3%," said Philippe Ferreira, Lyxor AM’s head of research, managed account platform.

Asked about the evolution of their investor base, hedge funds reported that they are continuing to receive inflows from institutional investors and are planning new hires. The rise of liquid alternatives is not reported to have any influence on their investment process. 56% of the managers surveyed believe that they will deliver returns in the 5-10% range (40% expect to deliver above 10%).

Risks and uncertainties

Asked about the risks and uncertainties, managers continued to express caution regarding U.S.......................

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