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January 15, 2007
Hedge fund industry 'to continue growing modestly'
The hedge fund industry will continue to grow a modest pace in 2007, after enduring an eventful 2006, a global investment bank has claimed.
Deutsche Bank collated the opinions of nearly 700 institutions and over 1,000 representatives for its fifth Annual Alternative Investment Survey and found that many are favouring funds in Asia.
A "huge jump in assets" is expected for hedge funds that invest China, while respondents claimed that emerging Asia is set to be the top performing region for the second year in a row.
Investment in long/short equities was ranked as the "top performing strategy" by 18 per cent of those surveyed, while macro and event-driven /relative value strategies were favoured by 13 and 12 per cent of respondents respectively.
John Dyment, global head of the hedge fund capital group at Deutsche Bank, remarked: "Despite a series of setbacks and scares in 2006, survey respondents feel the hedge fund industry will continue to grow modestly in 2007."
He added that the survey showed that investors intend to keep some of the events surrounding hedge funds in 2006 "in perspective" by using risk management to select hedge fund managers.
Last month, JP Morgan Asset Management claimed that the performance of the yen and Japanese government bonds had reportedly been a "nightmare" for macro hedge fund managers.
-London Stock Exchange-
Posted by su at January 15, 2007 11:27 AM