2013 Investor Outlook: SkyBridge's Gayeski bearish on equity and macro funds
By Lawrence Delevingne
Thu Jan 10, 2013
The senior portfolio manager at $6.8 billion fund of funds SkyBridge Capital weighs in.
What hedge fund strategies will do best in 2013? Why?We believe the best performing hedge fund strategies in 2013 will continue to be cash flow generative strategies, followed by catalytic strategies. These strategies include credit sensitive RMBS, due to strong asset class fundamentals (including the cheapest correlated valuations and the strength in the housing market), technicals (diminishing supply and increasing demand), and relative inefficiency (still relatively little hedge fund penetration, no prop desk competition, and many long-only large-mandate-constrained competitors). Additionally, we think prepayment sensitive RMBS will continue to be the best non-correlated strategy as the evolution of the housing market, underwriting standards, the Fed policy and the...
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