Hedge funds are showing signs of a shift in strategy M.A. Partners reports. Funds are increasingly pursuing multi-asset class and fixed income-related trading strategies the report says.
The industry was previously dominated by equity-related strategies, and some analysts say that one reason for this change was the development of a growing number of derivatives products. As a growing number of hedge funds try to trade on the same perceived equity-related opportunities, the need to find returns in other asset classes has become more important. The traditional hedge fund strategy of long-short equity, for example, has returned only 0.53 per cent this year, M.A. Partners reports.