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Equity long/short funds see rebound
17 December 2013
New Deutsche Bank report reveals the biggest hedge fund trends
Hedge funds using equity long/short strategies have made a
"strong rebound" this year, according to a new report by
Deutsche Bank’s prime finance team.
Such funds received net inflows of $9bn year to date compared
to outflows of $11bn in 2013. European equity long/short
managers have had high demand from investors globally, the bank
"Over the course of the year, we saw European allocators, as
well as their global peers, search for high-quality fundamental
stock pickers with capacity," the bank said in the
Equity long/short managers had performance-based gains of $79bn
compared to $57bn in 2013.
Overall the hedge funds industry grew in 2013 to $2.51trn by
the third quarter, higher than investors’
predictions that hedge fund assets would rise 11% by
The report also revealed that a number of institutional
allocators pay a disproportionate amount of their overall fees
to their hedge fund managers, which in aggregate account for a
relatively small percentage of the portfolio.
"As such these allocators have been increasingly focused on the
average management fee that they pay out to hedge funds, and
are keen to lower this absolute level," said Deutsche.