Market neutral a good bet

Prospects of a jobless recovery with healthy GDP growth and low inflation, and these very factors already being priced into stock markets, is leading some fund of fund managers toward equity market neutral and emerging markets where any gains may first be felt.

Philippe Bonnefoy, adviser to Commerzbank on the firm’s Comas and Cedar funds of hedge funds, says the positive signs for recovery are priced “quite robustly” into the equity markets already.

“We are still at 28 times the S&P 500 earnings a