Is long/short equity ‘broken’?


Stock-picking, both long and short, is proving almost impossible at a time when equity markets are in the grip of whipsawing macro sentiment

By Nick Evans

There is still a quarter of this exceptionally turbulent and uncertain year left to go, and much could yet change for better or worse, but 2011 has clearly not been a vintage year for long/short equity – most of all in Europe.

For several individual funds, it has been borderline disastrous – with some down as much as, or even more than, the markets themselves after a thoroughly rotten third quarter.

For a notable few, it has provided the chance to shine in the toughest of circumstances – and those who have prospered through the