Research

L/S Equity Fund Strategy Profile

The first eight months of 2022 have been characterized by a turbulent market environment, with the technology stock-driven bull market upended by central bank tightening, an inflation crisis, supply chain slowdowns, Russia's invasion of Ukraine and fears for the global economy. Against this backdrop, the average long/short equity hedge fund declined 7.9%, widely considered a disappointing return, but superior to the 13.3% fall in the S&P 500 Index, which entered a bear market for the first time since its sudden dive in March 2020. Despite a summer rally, few are expecting a sustained recovery in stock market performance, amid fears of a global downturn brought on by inflation-busting rate hikes, providing an opportunity for long/short managers to improve in a more subdued and less volatile market setting

Please login to read the rest of the article or sign up for a free trial.