Distressed debt and managed futures continue to be the expected winners when assets finally come back to hedge funds Be the first to comment »
From Kirsten Bischoff, Opalesque New York: As the Darwinian effect of the financial crisis takes hold, managers who have successfully generated alpha are expected to eventually reap the benefits of a smaller pool of competition. However, expectations are for assets returning to hedge funds to be in such strategies as distressed debt, direct lending, and managed futures, anticipates CP Eaton Partners.
Investors will continue to migrate away from hedge fund strategies using high levels of leverage and significant market beta as principal drivers of returns, the firm said in a statement.
These expectations are similar to what Pershing Square's William Ackman told the audience at Schulte Roth & Zabel's 18th annual Private Investment Funds Seminar. Ackman, being interviewed by Paul Roth shared his expectations that investors would favor more clear and understandable strategies going forward.
"We have seen more interest in launching distressed debt, managed futures and commodity funds, and not surprisingly, litigation funds....Full article:
http://www.opalesque.com/49500/Distressed_debt_and_managed_futures_continue.html