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From Kirsten Bischoff, Opalesque New York:
In today’s market cycle (which seems to be collapsing in shorter and shorter windows in between ramp-ups and drawdowns) investors with equity exposures need to either accept the risk of losses during a significant downturn, or create a way to time their entrances and exits in the markets. In "Investing in the Equity Markets via Equity Long/Short", a white paper authored by ABS Investment Management, the firm makes the case that long/short equity investing can serve to ease the pain of market drop offs as these strategies focus on protecting capital during down markets.
ABS manages approximately $2.7bn in commingled products and $1bn across separate accounts. The global equity long/short specialist team launched in 2002 and works mainly with Institutional Investors. This most recent whitepaper explores some of the reasons why these investors may especially benefit from viewing hedge funds not as an independent asset class, but as a vehicle for investing within the equity asset class.
The concept of including long/short strategies within a portfolio’s equity allocation is not new. In light of the losses many investors saw in the financial crisis, institutional investors (especially underfunded pensions and endowments) might benefit from adopting it, as it would give them reason to expand their exposure to equity L/S hedge funds, which have historically produced returns similar to equity markets with much less...................... To view our full article Click here
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