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Komfie Manalo, Opalesque Asia: In this challenging market environment, hedge fund strategies that have
done a bit better and had some success, are the more actively traded,
systematic strategies, stated Darren Wolf, head of hedge funds in the
Americas at Aberdeen Asset Management.
Speaking at the latest Opalesque 2016 New York Roundtable, Wolf explained
that these strategies are typically volatility-targeted and take the
discretionary decision to lower risk out of the equation. This has
helped in recent years, but added there certainly is no guarantee that
they will continue to work.
"Actually what concerns us a bit is the amount of money that has entered
this space over the last five or six years," he said. Wolf added that
the prevailing market environment has created a situation where hedge
fund managers in general don’t want to load up and take a lot of risk,
and yet the market has continued to climb higher.
"To be fair, this isn’t an environment where we expect hedge funds to
outperform. Hedge funds will never keep up with persistently rising
markets, especially if those markets seem disconnected from underlying
economic fundamentals," he said.
Wolf believes the hedge fund industry is heavily affected by the
continuation of a number of trends that have persisted for the past
couple of years. He sai...................... To view our full article Click here
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