Risk equals opportunity

Volatile markets and a net long bias have meant European long/short funds have had a difficult few months. However, sector bets in some areas have paid off and there remain significant opportunities.

The European market has been truly risky and hedge funds have suffered as a result of market sensitivity, according to Michael Nicol, co-manager of the SVM Highlander fund.

Risk and opportunities have both arisen from sharp movements in the markets, he says.

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