The UK equity market is likely to be tricky for hedge funds during the next 12 months, an expert has predicted.
The UK equity market is likely to be tricky for hedge funds during the next 12 months, an expert has predicted.
Georgina Taylor, equity strategist for Legal & General Investment Management, warned that conditions have toughened since last year and it will be far harder to choose successful stocks and shares in 2010.
She attributed this to a broad-based recovery from this point in 2009, which improved the odds of hedge funds receiving positive returns.
“It is important also to note that the UK equity market performance is no longer simply dependent on the UK economy. More than 70 per cent of UK FTSE 350 company sales now come from outside the UK,” she claimed.
Ms Taylor added that factors such as the value of sterling and global economic strength are also important for hedge funds to take into account.
Adam Buckley, head of programmes for the Manufacturing Institute, has claimed that the UK’s economic recovery will depend heavily on the performance of its manufacturing sector.
