The outlook for hedge funds

The hunt for active return is still on and with more realistic pricing, hedge funds could be the answer, argues Neuberger Berman's Fred Ingham.

This year has seen a number of investors rotating back into hedge funds. However, the year so far has not necessarily played out as expected, with long bond prices in particular having performed above general expectations and some mixed, albeit overall positive performance from hedge funds.  Taking a medium-term view, the thematic case for hedge funds still looks interesting.  Underlying economic issues such as global imbalances, high levels of government debt, geopolitical risk and China’s slowdown still challenge equity valuations. At the same time the issue of low absolute yi...