Equity market neutral (EMN) funds are back in vogue. Assets under management in the strategy, which slumped to $29 billion at the end of 2008 from a pre-crisis peak of $57 billion, hit an all-time high of almost $66 billion in April this year, according to Hedge Fund Research.
It may be a good idea to keep the champagne corked, however. Over the past decade, investments in exchange-traded funds (ETFs) that place directional bets on the same equity factors that EMN strategies aim to neutralise
The week on Risk.net, July 14–20, 2017Receive this by email