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By Beverly Chandler, Opalesque London:
Morten Spenner, CEO at International Asset Management Limited (IAM), one of the oldest specialist independent fund of hedge funds managers, is predicting that the returns of Long/Short Equity managers will benefit from fundamental drivers increasingly influencing equity market movements.
Spenner believes that event driven strategies will continue to be one of the best performing areas this year. IAMs outlook for a range of strategies as at the second quarter of 2011 looked at Long/Short Equity, Credit, Macro, Event Driven, Fixed Income Relative Value and CTAs.
Within the Long/Short Equity space, IAM expects to see a positive return outlook with medium risk outlook. "We believe that investors remain underinvested in equities at a time when strong earnings growth continues to be delivered and valuations are not expensive" the firm says. If fundamental drivers continue to influence market movements, then IAM expects correlations to remain relatively low and thus benefit stock picking on both the long and short sides.
Asian and Emerging Markets continue to offer the highest secular growth opportunities in the long-term while managers focused on the US have the potential to provide returns at the high end of the range because of a reasonably priced market, strong earnings growth, accommodative monetary policy and relatively high levels of net exposure.
In the Credit strategies, IAM forecasts a neutral re...................... To view our full article Click here
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