under management for investment managers using absolute return
and hedging strategies within the UCITS III wrapper are almost
$60 billion and there around 600 funds, according to the
HedgeFund Intelligence database.
Horwitz from HSBC Bank
Dorey, director for asset manager database Camradata, says that
interest in absolute return products has been "massive"
– especially for investors trying to beat cash or
says: "From about 2000 to 2003 we had a bear market run that
resulted in investors disliking short-term volatility. We have
seen a massive appetite for absolute return products or funds
that benchmark against inflation or cash – many that
include hedging strategies."
Dorey adds: "Individual investors, pension funds or company
pension schemes all want a consistent absolute return from
their investments and consistent asset growth. Investors also
prefer lower risk hedge funds than higher risk and want...