Strategic manoeuvres

Money is moving toward distressed asset and debt funds at the expense of arbitrage-based strategies, according to hedge fund allocators, although long/short funds are still absorbing about 40% of invested capital.

One London-based family office allocator, who declined to be named, says investors have been adding to distressed and emerging markets strategies, at the expense of merger arbitrage.

'Investors are looking for absolute returns and returns have been so compressed they are looking for le