Managers foresee a Happy New Year for hedge fund strategies

Fund of fund managers have painted a healthier picture for the industry in 2005 after a 2004 that could be described at best as 'trying'.Piers Metcalfe, senior investment executive at Sagitta Asset Management says the falling volatility of 2004 damaged global macro, CTA, short-selling, equity hedge, merger and convertible arbitrage funds. Also, rising interest rates hit CTAs, equity market-neutral as well as convertible and fixed income arbitrage .Tightening credit spreads hurt distressed,