2013 Investor Outlook: PineBridge's Discolo sees opportunity for equity and macro managers
January 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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