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.
'Fundamentals of companies drive our