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Alternative Market Briefing

Deutsche Bank's Global Prime Finance pegs economic growth at +3.8% by 2016

Tuesday, July 21, 2015

Bailey McCann, Opalesque New York:

Deutsche Bank's Global Prime Finance group is out with its monthly coverage of hedge fund trends. In a research note, analysts say that the worst part of the US economy's rough year is behind it, and despite slowdowns elsewhere in the world, global economic growth should end up somewhere around +3.8% by 2016.

For hedge funds specifically, analysts are also positive. "Though cautious, investors are showing renewed interest in the hedge fund space. US based pensions, healthcare organizations and endowments are driven more by process than by returns and are selectively focused on US based billion+ managers. In Brazil, appetite for certain investment strategies spans across asset classes however most investors’ hedge fund portfolios are concentrated in US focused Equity L/S & Global Macro. European investors are cautious of near term macro risks but optimistic on Europe and hedge funds in general. German investors’ options are limited by the lack of funds adhering to German tax transparency regulation but appetite remains stable. Korean investors, jaded by Madoff, gradually shift toward hedge fund investment," the note says.

Gains across strategies were muted through the month of May as markets were negatively impacted by the events in Greece and China. Emerging Markets Equity continues to lead way in year-to-date returns at 5.68%.

Hedge funds are building shorts throughout the tech sector. Short interest in technology na......................

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