UK sector neutrality is hard to maintain in these market conditions as most sectors are heavily correlated, according to Philip Hardy, manager of the Polar Capital UK market neutral fund.
Hardy, whose fund was launched in mid-November, said he has eased off shorting purely to hedge a long position in a particular sector as it is getting expensive in some cases. While the fund remains 60% neutral, sectors such as mining and telecoms are harder to short as all the stocks are moving in the same
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