What's the alternative? Buyers struggle to find contrarian funds

Fund buyers are struggling to find funds which are inversely correlated with equity markets as they try to protect portfolios against a potential correction.

Marcus Brookes, head of multi-manager at Schroders, said his team is unable to find a fund for its alternatives bucket which will make good money in a risk-off environment. Brookes suggested alternatives managers may be behind the curve when it comes to preparing for the next stage of the cycle. “Alternatives funds should be directional at the start of the cycle, becoming more market neutral as it matures, and subsequently finding opportunities to short risky, over-extended assets. But most managers are still pretty bullish in relation to their parameters.” Andrew Summers, head of ...