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From Kirsten Bischoff, Opalesque New York:

An annual survey of asset managers conducted by Massachusetts-based research firm Finadium, showed long/short equity strategies have been adopted by 65% of respondents, almost double the amount that reported managing long/short equity strategies last year. According to the report “Traditional Asset Managers as Prime Brokerage Clients,” one-third of the managers the firm surveyed launched a long/short equity fund or strategy within the last year.

Interviewing 27 asset managers that oversee a total of $8.4tln in assets, Finadium found respondents are continuing to move steadily into the alternative investment space. Most are evolving in order to meet investor demands for “hedged portfolios” by focusing on long/short equity investing and a smaller group (9%) are committed to managing the more constricted 130/30 strategies. They are also putting their own stamp on leveraged investing by modifying risk parameters and customizing client portfolios.

“Managers have learned from hedge funds and bank proprietary trading desks that investors seek a wide variety of risk and reward characteristics in their investment styles,” says the report.

Traditional money managers looking to diversify, create multi-asset class portfolios Traditional money managers are looking at margin and short selling as another strategy in their arsenal ......................

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