Strong volumes ahead slake UK managers' thirst for liquid shorts

UK LONG/SHORT

The UK is in 'midsummer market' mode, with low volumes and high volatility, according to managers, but the likelihood of a more liquid autumn is giving greater opportunities to managers who used index futures for shorting earlier in 2004.

Paul Findley, manager of Threadneedle's Crescendo UK fund, says the fund has used index futures because potential rewards from individual shorts did not justify the risks of the tight squeezes of the past four months. Around two thirds of the 60% of the fund