2013 Investor Outlook: PineBridge's Discolo sees opportunity for equity and macro managers
By Lawrence Delevingne
Thu Jan 10, 2013
The head of the $3.5 billion hedge fund solutions group at PineBridge Investments weighs in.
What hedge fund strategies will do best in 2013? Why? There
has been a lot written about hedge funds having disappointed in
2012 with a majority of funds underperforming the general
market. We feel that in the coming year investors will finally
start to realize that hedge funds are more a function of the
risk free rate as opposed to general equity or fixed income
markets. In the late 90s and early 2000s when the risk free
rate was above 5% it was not unusual to expect hedge fund
returns in the mid teens. In 2013 with 3 month LIBOR hovering
at around 30 basis points, a mid to high single digit return
for hedge funds would make most investors very happy. Heading
into 2013, we continue to see a solid year for hedge funds
overall. In the U.S., with policymakers beginning to tackle the
issues surrounding the fiscal cliff...
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