Survey indicates popularity of global macro and long short strategies
A new survey of European institutional investors indicates that global macro and global long short are the most popular hedge fund strategies.
The survey results were revealed by TARA Capital, a Geneva based investment advisory firm, as part of its third quarterly hedge fund barometer.
According to the survey: "In a year of unprecedented interest and growing commitments to hedge funds from major institutions the funds most in favour with European based investors appear to be Global macro and Global long short strategies."
These results are based on the latest quarterly survey of 25 European located institutions undertaken in spring of 2004. The institutions surveyed have a combined EUR 79 billion allocated to hedge funds. Tara Capital estimates that these investors account for approximately 10% of the total assets invested into hedge finds worldwide.
* Global Macro discretionary strategies are the biggest winner this quarter. John Lowry, founder and Managing Director of Tara Capital commented that "following the relatively difficult month of April particularly for this strategy it will be interesting to see whether the actual levels of inflows will match the earlier strong commitment to the sector."
* Other "in favour" categories are Global long short equity, European long short equity, managed futures and multi-strategy, all listed as preferred categories. Lowry further comments that "half of the respondents indicated that they would be increasing allocations to global l/S funds indicating a growing reluctance to predict the direction of individual markets, although interestingly the results show that European investors continue to have a lot more confidence in European equity managers than they do in US managers".
Least Favoured Strategies
* Strategies now out of favour are US l/s equity, fixed income and emerging market strategies. The fixed income showing a dramatic drop in interest levels over earlier surveys primarily due do the spreads tightening.
Previously Popular Strategies moving out of Favour
* Japanese hedge funds had been the most popular of all strategies since inception of the Barometer, however the latest results show a decline in its popularity although from an admittedly very high base.
- Special Reports
- By Location
- Asian Hedge Funds
- BVI Hedge Fund Services
- Bermuda Hedge Fund Services
- Canada Hedge Fund Services
- Cayman Hedge Fund Services
- Channel Islands Stock Exchange
- Future of offshore funds
- Gibraltar Hedge Fund Services
- Guernsey Hedge Fund Services
- Hedge Funds in Germany
- Hong Kong Hedge Fund Services
- Ireland Hedge Fund Services
- Isle of Man Hedge Fund Services
- Jersey Hedge Fund Services
- Jersey Private Equity Services
- Latin American Hedge Funds
- London Hedge Fund Services
- Luxembourg Hedge Fund Services
- Malta Hedge Fund Services
- Middle East Hedge Fund Services
- Singapore Hedge Fund Services
- South African Hedge Fund Services
- Spanish Hedge Funds 2008
- Switzerland Hedge Funds
- US East Coast Hedge Fund Services
- US Hedge Fund Services
- By Subject
- Conference reports
Latest Special Report
- By Location
- How to set up a hedge fund